Your Report Title

E-COMMERCE IN

CAMBODIA

2022

AcomprehensiveoverviewofCambodia’sE-commerce

landscape. Addressing challenges, initiatives

and the future.

Prepared by:

Supported by:

Sponsored by:

Introduction to the 2022 report

As the third rendition of our hallmark E-commerce Report, PROFITENCE has aimed

to provide an in-depth study on Cambodia’s E-commerce landscape for the year

2022.

While research on this subject has come a long way, there is still a significant lack of

easily accessible and publicly available information to better help consumers, the

private sector and the Government to further progress the role that E-commerce

plays in today’ssociety. To address this issue, in 2022 we set out to produce a one-

stop report applicable to all stakeholders.

The report will include a national consumer behavior study with a sample size of

1,500 respondents across all 25 provinces (with a focus on major cities). Building on

the success of our previous year’s report our 2022 study covers a wide range of

additional topics including E-commerce marketplaces, E-trade and most in-line with

the Ministry of Commerce’s (MoC) current focus, cross-border E-commerce and

export readiness. With a coverage of 10 nascent and established industries, this

report dives into specific insights and challenges from our survey results, with

additional insights from industry experts.

This year, we provide recommendations fitted to the Cambodian context in an

attempt to provide further value to both the private and public sector operating

within E-commerce in Cambodia.

We are thankful for the support that MoC, in their mission to promote domestic and

cross-border E-commerce, have provided us in attempting to produce a data-driven

report. We would also like to thank all the industry experts that we interviewed, as

well as the sponsors of this report in aiding with the necessary insights and data

points.

We sincerely hope that the production, and launch, of this report sets the tone for

what further research is to come and look forward to seeing the progression of one

ofthefastestgrowingsegmentsinCambodia’seconomy.

Mr. Subhadeep Chowdhury

Director and Co-Founder

PROFITENCE

Foreword - MoC

In the context of 4th Industrial Revolution (IR 4.0), digital technology is a key driving force

of industrial competitiveness and business operation, significantly contributing to high

productivity, increased export, job creation and economic growth. With the view to long-

term opportunities of IR 4.0, the Royal Government of Cambodia (RGC) of the Sixth

Legislature of the National Assembly identified the need for "Preparation for Digital

Economy and Forth Industrial Revolution" in the 3

side of the 2

rectangle of the

Rectangular Strategy Phase 4.



To realize the above-mentioned vision of the RGC, the Ministry of Commerce (MoC) with

financial support from the Enhanced Integrated Framework (EIF) undertakes a number of

initiatives to formulate (i) Cambodia Trade Integration Strategy (CTIS) 2019-2023 which one

of the chapters focuses on e-commerce as a new source of growth; (ii) A National E-

commerce Strategy as a guiding map for e-commerce sector development under a

harmonized and well-coordinated framework; and (iii) Go4eCAM Project as an e-commerce

project booster to develop commerce ecosystem.



The 2022 E-commerce Report by PROFITENCE was conducted following surveys and direct

consultations with public sector, development partners and private sectors. For the Ministry

of Commerce, it had led several initiatives to ensure that legal and policy frameworks for e-

commerce are established and implemented. The Ministry had led to adopt the Law on E-

commerce which was promulgated on 02 November 2019 to serve as an important legal

foundation for e-commerce sector development, especially for protecting and building trust

among e-commerce users as well as attracting foreign investors in e-commerce sector. In

addition, e-commerce is also one of the major topics in trade negotiations at regional and

global levels. For instance, Cambodia has signed and endorsed the ASEAN Agreement on

Electronic commerce which is an integral part of legal and regulation framework

accelerating e-commerce growth in ASEAN. E-commerce is also included in the Regional

Comprehensive Economic Partnership (RCEP) and other on-going negotiations. In the

parallel vein, the Ministry have joint with other international organizations such as WTO,

UNCTAD, UN ESCAP and others to secure that Cambodia is in line with international legal

frameworks and initiatives.



MoC would like to extend its support to PROFITENCE and their publication on the 2022 E-

commerce landscape in Cambodia. As a holistic, independent and data-driven overview, this

report serves its purpose in alignment with the Royal Government of Cambodia’sDigital

Society and Policy Framework 2021-2035 and the Ministry of Commerce’s E-Commerce

Strategy 2025. It is timely to reflect on the many achievements that have taken place across

this space, but more importantly, critical, that the future of E-commerce in Cambodia is

articulated with a mutual understanding that public-private cooperation is necessary. As an

e-commerce enabler and facilitator, MoC strongly hopes that this report will serve as a key

document for all stakeholders involved in the ecosystem and can be used as guiding book to

their individual benefits which would contribute to country's economic development,

especially transforming Cambodia into a digital economy in the future as well as realizing

Cambodia's vision of becoming a high-middle-income country in 2030 and high-income

country in 2050.

LCT. TEKRETH Kamrang

Secretary of State

Ministry of Commerce

Executive Summary

SincetheimplementationofE-commerceLawin2019,Cambodia’sE-commerceecosystemhasbeensettobecomeoneoftheregion’sfastest

growing E-commerce markets. Today, the E-commerce landscape is likely to witness sustainable growth, driven by strong government support, a

growing urban population, high internet penetration and social media adoption rates, higher consumer spending, and a robust technology start-up

ecosystem. In large, these key points have allowed Cambodia to become a destination for innovative E-commerce solutions across numerous sectors.

1 3

Survey Details & Key Findings

Industry Insights

Moving Forward

Survey Details: A digital survey of n=1500 was

disseminated for a period of 8 days in July, 2022.

With coverage across all 25 provinces, it focused on

consumer behavior surrounding E-commerce.

Key Findings: Fashion and Apparel remain as the

most purchased items online (same finding in 2021).

A majority of respondents allocate between

USD 11 to USD 50 per month for online shopping.

Promotions/discounts available online are the main

reason online shopping is a preferred platform for

many. A lack of trust, especially for consumable and

wearable goods, is the main reason behind a

(minor) preference of cash on delivery over online

payments. However, the gap between payment

preferences have reduced significantly over the

past 2 years between online vs. cash payments;

there is almost an even split in 2022. Convenience

seems to be the biggest factor influencing greater

preference for digital payments methods.

Banking: Growing number of integrated digital payment

systems have led to higher cashless payment adoption.

Food and Grocery Deliveries: Demand for food and grocery

deliveries have not dropped to pre-COVID levels.

Insurance: Lack of education on benefits of Insurance persists,

individuals still prefer an in-person experience with agents.

Online Education: Lack of unique data in Cambodia, and still

in a nascent stage with limited local choices for consumers.

Logistics: E-logistics is growing rapidly. There is also a

rising demand for quick commerce in Cambodia.

Ride-hailing/Transportation: Usage declines outside of major cities.

Growing trend for companies to expand into Super apps.

Fashion: Remains the most purchased item online,

dominated by sellers across social media platforms.

Beauty and Cosmetics: Consumer base has shifted with a younger

population.Growingonlinepresenceisdrivenbyint’l.trends.

Healthcare: Growing demand for all-in-one digital health platforms.

Industry is still in a nascent stage.

Media and Entertainment: Lower growth rate today as opposed to

pre-pandemic. Willingness to use premium subscription models are

still limited.

Core Recommendations for the Private

Sector:

1. Promote registration of businesses,

encouraging a shift from unregulated

social media markets.

2. Enhance public-private-development with

the Government.

Core Recommendations for the Government:

1. Increase data security, implementation

and monitoring for consumer protection

through a regulated, interoperable and

connected database.

2. Increase coordination amongst

Government agencies on the support

provided to MSMEs.

3. Increase adoption of online tools to allow

for more G2B and G2C services.

4. Seek inputs and advice from the private

sector on innovations and technologies

that will affect E-commerce.

Our Report Over the Years

2022

2021

2020

A general understanding of the

emerging E-commerce

ecosystem in Cambodia.

A more extensive and holistic report

analyzing a few key industries and

trends.

A comprehensive report, deep-

diving into numerous key

industries, within a national

context.

10 Industries covered

extensively

National consumer

behavior study

*n=1500, country-wide with focus

on major cities.

Ministry support

Close collaboration with

industry leaders and experts

• Detailed challenges, and industry

analysis

Recommendations for

Public and Private

Sectors

New aspects

covered:

• Quick commerce

• E-commerce

marketplaces

• E-trade and export

readiness

• 6 Industries covered

• City-wide consumer

survey

*n=155, circulated within Phnom Penh.

• Overview of E-commerce

ecosystem

ASEAN Comparison

• Thailand comparison with

key takeaways



Recommendations



In-depth industry research

Insights from public/private sector

experts

• Brief overview of E-commerce

ecosystem.

• Basic outline of government

initiatives

• Thailand comparison



Primary data (consumer survey)



Industry research

Insights from public/private sector

experts



Table of Contents

Global Market

Overview

Cambodia Market

Overview

Cambodia E-commerce

Marketplaces

Cambodia E-commerce

Export Readiness

Quick Commerce

(q-commerce)

Evolution of

E-commerce Drivers

E-commerce Challenges

E-commerce Definition

Summary of

Government Initiatives

(4 pages)

E-commerce in the

ASEAN Region (2 pages)

Cambodia E-commerce

Industry SWOT

Industry Focus | 10 industries

Latest development, trend, each industry pre, during and post pandemic

Competitor

Landscape

Survey

Methodology

Future Outlook

Conclusion

Core team, Sponsors,

About PROFITENCE

•Bank/OnlinePaymentGateway

•Food&GroceryDelivery

•Insurance

•OnlineEducation

•Logistics

•Ride-hailing/

Transportation

•Fashion

•Beautyand

cosmetics

•Healthcare

•Mediaand

Entertainment

PROFITENCE 2023

“AnE-commercetransactionisthesaleorpurchaseofgoodsorservices,conductedovercomputer[ormobile]networksbymethods

specifically designed for the purpose of receiving or placing of orders. The goods or services are ordered by those methods, but the

payment and the ultimate delivery of the goods or services do not have to be conducted online. An E-commerce transaction can be

betweenenterprises,households,individuals,governments,andotherpublicorprivateorganizations.”(OECD, 2011)

E-Commerce Definition

Source: OECD, Shopify

B2B

Business-to-Business

B2C

Business-to-Consumer

C2C

Consumer-to-Consumer

C2B

Consumer-to-Business

D2C

Direct-to-Consumer

B2G

Business-to-Government

C2G

Consumer-to-Government

E-Commerce includes a variety

Of goods and services

Digital Products

Wholesale

Retail

Drop-shipping

Crowdfunding

Subscriptions

Physical Products

Services

China: 2785 Billion

USA: 1065 Billion

UK: 246 Billion

Japan: 169

Billion

S. Korea: 143

Billion

Global E-commerce Overview

Source: CBRE, eMarketer, digitalcommerce360, PROFITENCE Analysis

GLOBAL RETAIL MARKET SIZE

TOP 5 COUNTRIES RANKED BY RETAIL E-COMMERCE SALES, 2022

Online

Offline

91%

2016

Online

20%

Offline

80%

2021

2016: USD 13.9 trillion 2021: USD 15.6 trillion

• Three out of the five biggest E-

commerce markets are in Asia.

(See chart on the top-left)

• Three out of five fastest E-

commerce sales growth rate are

in Southeast Asia.

• Thisreflectstheregion’sE-

commerce potential.

TOP GLOBAL MARKETPLACES BY GMV*, 2021

25.9%

25.5%

23%

22%

19%

Asia Pacific region made up

~60%*

of retail E-commerce sales globally.

GMV:

USD 711 billion

GMV:

USD 672 billion

GMV:

USD 390 billion

INDIA

PHILIPPINE

BRAZIL

INDONESI

VIETNAM

*GMV: Gross Merchandise Value tracks the total value of merchandise sold over a given period of time.

*Asia Pacific: USD 3.3 Trillion, Global: USD 5.5 Trillion

Sales Growth, 2022

Cambodia Market Overview

Source: World Bank, Worldeconomics, NBC, MoC, Macrotrend, Tradingeconomics, US Embassy, FAO

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

5000

10000

15000

20000

4990

5644

6785

5120

6080

6938

8136

9500

10456

11140

12267

13458

15135

16549

15793

5530

6302

7016

5817

6692

7634

8813

10303

11192

11939

13145

14217

15555

16922

16161

Export & Import (15y) from 2006 to 2020

(in USD Million)

Export Import

GDP

USD 30.544 Billion

GDP Per Capita

USD 1,842

Land Area

181,035 km

25 provinces/towns

Main import partners:

• China

• ASEAN

• Thailand

• Vietnam

• EU

Main export partners:

• USA

• EU

• China

• Japan

• ASEAN

Language

Khmer 97%

Others 3%

Religions (2019)

95% Buddhism

5% others

Population

16.8 M

Capital City

Phnom Penh

Population: 2.2 M

Urban Population (2019)

6,135,194

39.4% of total population in 2019

Population Density (2021)

96/km

Population Age

from 15 to 64 (2021)

10.9 M

National Currency

Riel

(NBC)

*2022, estimated

*ThemostrecentGov’t.PopulationCensuswaspublishedin2019.

Cambodia E-commerce Overview

Source: Statista, MangoTango Asia

E-COMMERCE MARKET SIZE

In USD Million

Brunei Lao Myanmar Signapore Malaysia Vietnam Philippines Thailand Indonesia

157

759

1,111

3,400

7,290

10,120

14,810

20,180

22,200

62,590

E-commerce Revenues in 2022

Cambodia

MARKET TRENDS

• Across Asia, a majority of online shoppers still compare prices online, and prefer to touch and feel products before making a

purchase.

• Mobile device usage is boosting E-commerce (~70% of retail websites visits worldwide came from mobile devices).

• Majority of E-commerce users are a young population, and they are introducing E-commerce to their parents as well.

• E-commerce will continue to be driven by tech-savvy consumers who prefer a quick and seamless shopping experience.

• Majority of online websites cater to serve a small number of urban consumers.

• Government initiation, strategies, and regulations come in to bring fairness to both consumers and sellers.

Cambodia E-commerce Marketplaces

Source: CambodiaTrade,PROFITENCE’sanalysis

In 2022, the number of

Facebook users was 78%

of internet users.

CambodiaTrade is an E-commerce marketplace operated by the Ministry of

Commerce,launchedinMarch2022.ItservesCambodia’ssmallandmedium

enterprises to sell their Made-in-Cambodia products online to potential

clients in domestic and cross-border markets.

Social commerce platforms, especially Facebook,

are still amongst the more popular online

marketplaces in Cambodia.

There are 10+ online

marketplaces in Cambodia.

Most common product sale on E-

commerce marketplaces are daily

used products from fashion to

electronic tools.

Many supermarket businesses use

an omnichannel sales strategy.

Challenges for new

SMEs trying to operate

online marketplaces:

1. Human Resources: Lack of skilled talent

and digital literacy, especially for low-income

producers of goods and services.

2. Partnerships: Lack of fast, affordable, and reliable

logistics service providers.

3. Logistics: Complicated postal addressing system in

rural areas.

4. Payments: Limited financial technology penetration,

and lack of exposure to alternative payment

methods.

Customers can purchase products

both at physical stores and online

stores. On websites and mobile

apps, companies offer self-service

or are partnered with delivery

companies.

Increased economic opportunities and exposure for

Micro, Small, and Medium Enterprises (MSMEs)

The platform plays a vital role in supporting vulnerable enterprises

duringthecountry’stransformationtowardsadigitaleconomyunder

its Digital Economy and Society Policy Framework 2021-2035.

A gateway to greater cross-border exports

Cambodia’sE-commerceisalmostexclusivelydomesticE-

commerce. Partnerships with global logistics provider DHL open

the door for domestic products to be accessed by a global

consumer-base. The variety of international payment gateways

further promote the purchase of local products in foreign markets.

Cambodia E-commerce Export Readiness

Source: Industry Experts, Survey Responses, MoC, Swisscontact,World Bank

Cross-border E-trade is a largely untapped market for

growth in Cambodia. Over the last two years, the Ministry of

Commerce, alongside its international trade and program partners

have focused on promoting trade facilitation through digitalization.

Two notable Government initiatives:

Primary Objectives:

1. Contribute to Cambodia's undertaking of digital trade facilitation to

enhance the enabling environment for cross-border trade.

2. StrengthenCambodia’se-TradeenvironmentforSMEs,byestablishing

ane-tradeportalandhelpingCambodia’sSMEstakefulladvantageof

an improved customs clearance process of postal shipments and postal

service, resulting in time and cost reductions for their small package

exports and imports.

Improving Small Package E-Trade for

SMEs (SeT4SME)

The Ministry of Commerce partnered with Cambodia Post, Khmer

Enterprise, UNDP and the UPU to implement an E-commerce

ecosystem program in Cambodia (Go4eCAM), aiming to provide the

necessary conditions for MSMEs to go digital and to gain access to

much needed finance for E-commerce uptake and business

formalization to support export readiness.

Go4eCam

• Digital literacy across Cambodia is still low, impacting the potential for traditional

businesses to expand further.

• This attributes to many entrepreneurs still being weary, and unsure about

moving to digital platforms.

• E-trade participants must be proficient in digital literacy and business

development, adapting cognitive, social, and technical skills to the digital business

environment.

Digital Skills and Entrepreneurship

• The costs of cross-border trade are especially high for small businesses shipping

small packages.

• Reducing trade transactions costs by enabling digital automation of trade data

(such as implementation of an Electronic Advanced Data system) will be key to

connecting local businesses with foreign markets and value chains.

E-trade Logistics and Trade Facilitation

• Basedonashortinternalsurvey,thetopreasonmerchantsdon’twanttoexpand

into cross-border E-commerce is regulatory complexities.

• Informal and unregistered businesses on social media platforms lack access to

proper channels where they can conduct cross-border E-commerce in a safe,

secure and regulated manner.

Legal and Regulatory Framework

There are three key areas which should be focused on when preparing

micro, small and medium enterprises for e-trade. These are highlighted

within a Cambodian context below:

Quick Commerce (Q-commerce)

Source: Statista, Business Standard, EduMe,

CONCEPT BRIEF

CAMBODIAN PREFERENCE

FOR QCOMMERCE

• E-commerce vs Q-commerce: E-commerce often refers to

the online purchase, or sale, of goods or services,

which can take 1-3 or longer days to deliver, whereas Q-

commerce is a form of E-commerce that delivers small

quantities of goods in the shortest possible time.

• Q-commerce aims to deliver in a 10 minute to 1 hour time-

span.

•

To deliver such short times, retailers rely on online ordering

systems,

fulfillment hubs placed strategically in densely populated

areas, and a two-wheeled delivery team.

• There is no dedicated quick commerce player in Cambodia,

however local players such as Nham24 are expanding into

this segment of E-commerce.

Generation commerce

generation E-commerce 3

generation q-commerce

Self Service

Delivery 2-3 days

<1h delivery time

All products available

Main products

available

Small selections

available

Privately owned car

Delivery truck

Two wheeled

vehicle

Super Store

Mega

warehouses

Local store

or warehouse

Three to four people households

Discount matters

Speed matters

Often single-person

households

With in 3 days

With in 2 days

With the day

6 hours

3 hours

1 hour

30 minutes

20%

32%

15%

24%

Acceptable delivery time

of consumers are willing to pay an

extra price for faster/same-day delivery.

66%

High Internet Usage

2016

2021

Evolution of E-commerce Drivers

Source:

TRC ,NIS, NapoleonCat., NBC, MLVT, NBC2, B2B Cambodia, World Bank,PROFITENCE’sAnalysis

SOCIAL MEDIA USERS

(2018-2022)

Millions

2018 2019 2020 2021 2022 (June)

Facebook Instragram

Thereare12,845,400FacebookusersinCambodiaasofDecember

2021,whichaccountedfor74.2%ofitsentirepopulation.

INCREASED CARD PENETRATION

10%

25%

Affordable Mobile Data

Mobile internet

USD 4 per month for 4G

2% of minimum wage (USD 194)

Higher consumer spending

Growing Urban Population

Urban population

(% of total population)

2008: 20%

2019: 39.4%

Supportive regulatory framework

E-commerce Law

passed in 2019

Since 2019, additional framework on tax

regulations (2022), registration, licenses

and permits (2020) have been

implemented.

Growing Digital Startup Market

In 2022, there are over

300

active technology startups.

18M internet users in

2022 as compared to

8M in 2016

(4G coverage is 80%

of the population)

2016 --> 2022

GDP per capita in 2022:

USD 1842

up 6.4%

from USD 1,730 in

2021.

2015 --> 2021

Percentage of debit + credit cards to population.

Source: Mekong Business Initiatives, khmertimes, UNDP, ADB, CADT, Business registration

• Cash-based culture.

• Fragmented financial literacy initiatives.

• Some businesses cannot offer all payment options.

• Limited trade-finance instruments for SMEs.

Limitation of Payment Systems

• Cambodia is at a low level of digital literacy in digital

and technological adaptation; less than one-third of

the population has basic digital skills (CDRI 2020).

• According to RGC, only approx. 30% of Cambodians

have the skills necessary to conduct internet

searches and operate digital systems for

communication and information sharing in 2021.

Limitation of Digital Skill

• Consumers are not confident in the quality of

domestic products, so they source internationally.

• Lack of clear refund policies creates doubt in

consumers.

• Consumers are not convinced when sellers request

to pay in advance.

• Some sellers request the consumers to pay in

advance over concern that consumers will ask to

return the goods.

Lack of Trust

• Last-mile services at border & rural areas are limited

due to poor addressing and fragmentation of

service providers.

• Domestic delivery companies still have limited

knowledge in managing returns, parcel delivery,

and real-time traceability of packages.

• Road infrastructure & warehouse facilities at the

border need to develop more.

• Innovation (cloud computing, AI, etc..) needs to

improve for 3PL service suppliers and enterprises.

Lack of Logistics Control

• ICT infrastructure is primarily available in major

cities across the country, but development in

rural areas is still needed.

• There is a gap between major cities, provincial

cities, and rural areas in terms of mobile 4G

services.

• E-commerce boomed during covid-19, and

remains a fairly new concept; there is a lack of

trained IT professionals to support and digitalize

platforms.

Lack of IT infrastructure & talents

• Lack of a centralized system to store

information and regulation on E-commerce for

everyone.

• Extensive documentation requirements increase

the time needed to register, creating additional

burdens for micro and small businesses.

Late Information & Process

E-commerce Challenges

Summary of Government Initiatives

A summary of relevant

government policies, legal

framework and initiatives

to promote the digital

economy and E-

commerce in Cambodia

are listed below:

2014 2015

2017

2018

2019

2020

• Prakas No.290 on

E-commerce Permit and

License from MOC

• The MoC Go4ecam

project was launched to

enhancethecountry’sE-

commerce ecosystem

• Bakong,Cambodia’sonly

all-in-one mobile

payment and banking

app launched by NBC

• Single Business

Registration Portal

• Cambodia National E-

commerce Strategy is

launched (MOC)

• Good Practice Guides on

Moving Online in

Cambodia

• MoC hosted the

E-commerce training for

SMEs to get ready with

the Go4ecam project

• MPTC hosted e-

shoppingfair‘The Grand

OnlineShoppingFest’

• Work plans for the

implementation of the

ASEAN E-commerce

Agreement and of the

RCEP Provisions on E-

commerce are approved

by MoC

• MoC issued

announcement No.1143

dated on May 26, 2021

on granting E-commerce

permits or license.

• Government has started

to implement

E-commerce VAT and

update system for

taxpayers

• Cambodia Digital

Government Policy (2022-

2035)

• Cambodiatrade.com to

promote E-commerce

and get ready to export

local products to foreign

market

• MoC has signed MOU

with SwissContact to

initiate a project entitled

‘SeT4SME’fortradeand

E-commerce

development

• Law on Consumer

Protection

• Cambodia Trade

Strategy (CTISU 2029-

2023)

• E-commerce Law

• RCEP Agreement

• New USD 5 million

annual fund to boost

digital start-ups

• Rectangular

Strategy for

Growth,

Employment,

Equity, and

Efficiency IV

(Phase IV 2019-

2023)

• Sub-Decree

No. 246:

DIGITAL

SIGNATURES

• Cambodia

eTrade

Readiness

Assessment

Report

(UNCTAD/MoC)

• MoU between

Cambodia and

China on

E-commerce

• Industrial

Development

Policy (IDP,

2015-2025)

• Law on

Telecommunic

ations

2021

2022

2010

• Cambodia

ICT

Master

Plan 2020

• Draft of

Cybercrim

e Law

Cambodia is exploring new sources of growth as it progresses towards a

middle-income economy, with a stronger role by services combined with

increased digital adoption. This translated in the development of a robust

E-commerce ecosystem: In the space of four years the Royal Government of

Cambodia passed a law, developed a strategy, created dedicated

registration mechanisms, and imposed VAT on

E-commerce for foreign players on par with more advanced economies.

Currently,effortsarefocusedongettingtheprivatesectortoadoptdigital

tools, businesses to move from offline to online and to spark cross-border

E-commerce. A truly remarkable journey, when 5 years ago, there was

barely any E-commerce activity in Cambodia.

- Sven Callebaut, International Trade Policy and Digital Trade

Advisor, Ministry of Commerce

“

Year

Government Initiative, Policies

and Legal Frameworks

Key Objectives

2010 Draft of Cybercrime Law

Aims to define the awareness measures, to prevent and combat against all cybercrimes to ensure law enforcement concerning

cybercrimes, as well as to ascertain safety and legal benefits in using and improving information and communication technology.

2014 Cambodia ICT Master Plan 2020

AimstoprovidePilotProjectsforthesuccessfulimplementationof“Enrichinge-Services”amongfourstrategicthrustsofthe

Masterplan.

2015

Industrial Development Policy

(IDP, 2015-2025)

Aims to address structural challenges and to invest in key industrial infrastructure, both hard and soft, to be in line with the

potential, competitive advantage and development of the Cambodian industry, and define various interconnected measures at the

macro and sectorial level and at specific interventions in response to actual needs. The policy changed every 5 years.

2015 Law on Telecommunications

Aims to ensure safe, reliable, affordable, quality telecommunication infrastructure to fulfill the needs of social and economic

development, ensure development, governance, and regulation of the telecommunication sector, and ensure the protection of

internet users.

2017 Sub-Decree No. 246: DIGITAL SIGNATURES

AimstoregulateandpromotetheuseofdigitalsignaturesinCambodia.A“Digitalsignature”isdefinedasthedatawhichislinked

to an electronic message used to confirm the identity of the digital signatory and to verify the original status of the electronic

message. To be considered a digital signature, it must properly and specifically affirm the identity of the digital signatory, confirm

the original status of the electronic message, and certify the time and date that the digital signature was executed.

2017

Cambodia eTrade Readiness Assessment

Report (UNCTAD/MoC)

The first ever comprehensive diagnostic of Cambodia’sreadinessforE-commerceis produced, prioritizing actions to bridge the

gaps with best regional performance.

2017

MoU between Cambodia and China on E-

commerce

China and Cambodia will step up E-commerce cooperation in areas such as policy communication, capacity building, personnel

trainingandjointresearch,especiallyunderChina’sstrategicOneBelt,OneRoadinitiative.

2018

Rectangular Strategy for Growth,

Employment, Equity, and Efficiency IV

(Phase IV 2019-2023)

Aims to develop entrepreneurship and a digital ecosystem that is beneficial for new business start-ups, promotes digital business

systems, and partnership cooperation with the private sector.

Government Initiatives [1/4]

Source: MoPTC, Phnom Penh Post, KOICA, MPTC, RGC

A summary of relevant government policies, legal framework and initiative to promote Digital Economy and E-commerce in Cambodia are listed below:

Year

Government Initiative, Policies

and Legal Frameworks

Key Objectives

2019 Law on Consumer Protection

Aims to ensure the protection of consumers and contributing to the promotion of fair competition. The objectives is define the

rules and mechanisms for contributing to the creation of the trading environment, in which:

- The rights and interests of consumers are protected;

- The trading is fairly competitive, and

- Consumers and business persons conduct activities together with trust. (Cambodia Commerce)

2019 Cambodia Trade Strategy (CTISU 2029-2023)

Cambodia’s4

trade strategy, developed by the Ministry of Commerce includes a dedicated chapter and roadmap on E-commerce

(chapter 11) and on digital transformation and industry 4.0 (chapter 12) (CTISU)

2019 E-commerce Law

The goals for this law:

1) To determine the authenticity, perfection and reliability of an electronic form;

2) To promote the development of legal and business framework in order to conduct safe electronic commerce;

3) To prevent and enforce against acts which are harmful to data and information systems;

4) To eliminate obstacles which hinder electronic commerce and which created by the uncertainty of requirements of written

documents and signature;

5) To facilitate electronic filing of documents with public institutions and promote an efficient delivery of services of public

institutions through the use of reliable electronic records; and

6) To establish rules, regulations, and standards regarding the authenticity and perfection of electronic records.

2019 RCEP Agreement

Launched by ASEAN Leaders at the 12th summit in Phnom Penh and signed by the RCEP ministers on Nov 15, 2020, on the occasion

of the fourth RCEP summit in Hanoi, Vietnam. The agreement establishes a comprehensive, modern, high-quality partnership

framework that provides mutual economic benefits that will facilitate the expansion of regional trade and investment supply

chains, support to the world on the multilateral free trade system (MoC). Chapter 12 of the agreement is dedicated to E-commerce.

It entered into force in January, 2022.

2019

New USD 5 million annual fund to boost

digital start-ups

In a bid to ease the transition into a digital economy, the government will create a USD 5-million annual fund to strengthen the

tech start-up scene in the country, Prime Minister Hun Sen said (Khmertimes).

2020

Prakas No.290 on E-commerce Permit and

License from MOC

Aims to mention the Provision of Permits and Licenses for Electronic Commerce. The law applies everyone who conducts

businesses or transactions through electronic means including:

(i) natural persons; (ii) sole proprietorships; (iii) legal entities; and (iv) branches of foreign companies.

Source: Soksiphana, Cambodia Commerce, Khmertimes

Government Initiatives [2/4]

A summary of relevant government policies, legal framework and initiative to promote Digital Economy and E-commerce in Cambodia are listed below:

Source: Khmertimes, B2B, ASEAN Briefing

Year

Government Initiative, Policies

and Legal Frameworks

Key Objectives

2020

The MoC Go4ecam project was launched to

enhancethecountry’sE-commerce

ecosystem

The 3-years project implemented by MoC includes 8 components that aim to:

(1) Increase economic opportunities for small and medium enterprises (SMEs) by giving them a doorway to the digital economy

through an E-commerce platform.

(2) Improve E-commerce in provinces, give extra help to businesses owned by women and develop the B2B marketplace.

(Khmertimes)

2020

Bakong,Cambodia’sonlyall-in-onemobile

payment and banking app launched by NBC

Aims to modernize the payment system in Cambodia and to respond to the growth of the economy and financial technology,

enabling interoperability between institutions, enhancing the efficiency, and security of a payment system, promoting financial

inclusion and promoting the use of [cashless] Khmer riels.

2020 Single Business Registration Portal

A new online business registration system launched by the government aims to approve applications within eight (8) working days

andexpandthesystemtoallministriesandinstitutions–meaningalllicensesandcertificateswillbeissueddigitallygoingforward.

2020

Cambodia National E-commerce Strategy is

launched (MOC)

Aims to promote economic growth and preparedness for a robust digital economy between the public, private and development

partners. There are 10 chapters comprised of:

1) Strategy and Policy Focus and institutional coordination, 2)Legal and regulatory frameworks, 3) SME regulations, 4) Information

and communications technology (ICT) infrastructure, 5) Digital knowledge/skills infrastructure, 6) Payment systems, 7) Domestic E-

commerce/trade logistics, 8) Cross-border trade, 9) Access to finance, 10) Trade information and in-market support.

2020

Good Practice Guides on Moving Online in

Cambodia

MoC, with support from the Government of Australia and TradeWorthy Ltd., launched 4 good practice guides (GPG) to help

MSMEs move from offline to online during the pandemic, with focus on (1) Food delivery, (2) Consumer Goods, (3) Groceries and

(4) Travel and Transport. The GPG are available in English and Khmer.

2021

MoC hosted the E-commerce training for

SMEs to get ready with the Go4ecam project

Small and medium-sized Cambodian companies are to receive government training on how to make the most of the digital

economy in which it is an important part of its Go4eCAM project. The Digital Business Training Program for Small and Medium

Enterprises is co-financed by the Ministry of Commerce, the Ministry of Economy and Finance, the United Nations Development

Programme and a Cambodian entrepreneur (Khmertimes).

Government Initiatives [3/4]

A summary of relevant government policies, legal framework and initiative to promote Digital Economy and E-commerce in Cambodia are listed below:

Source: MoC, MPTC, B2B, Khmertimes, RGC, PhnomPenh Post, Swisscontact

Year

Government Initiative, Policies

and Legal Frameworks

Key Objectives

2021

Work plans for the implementation of the

ASEAN E-commerce Agreement and of the

RCEP Provisions on E-commerce are

approved by MoC

The work plans will help mainstream key policy, legal and regulatory improvements in the work of several Government entities.

The workplan formulation were spearheaded by the ASEAN Coordinating Council on E-commerce (ACCEC), led by the Ministry of

Commerce in Cambodia. Areas of work include data protection, data privacy, cybersecurity, electronic payments, cross border

paperless trading, location of computing facility and cross-border data flows. It was entered into force in January, 2021

2021

MPTChostede-shoppingfair‘The Grand

OnlineShoppingFest’

The intention of the festival is to negate the economic effects of Covid-19 on the small-business economy in Cambodia, shift

purchasing behaviour online, support local small businesses to digitalise, and provide an unprecedented opportunity for both

vendors and customers to promote and access deals and a range of products from wherever they are located across the country.

2021

MoC issued announcement No.1143 dated on

May 26, 2021 on granting E-commerce

permits or license.

MoC invited the businessman, sole proprietor, company or foreign branch that is operating E-commerce business activity to apply

for an E-commerce permit or license no later than the 1

December 2021; failure to comply is subject to fined in cash or ceased the

business activities or faced with other measures as stated by laws and regulations. The deadline is extended to 1

March 2022.

2022

Government has started to implement

E-commerce VAT and update system for

taxpayers

The implementation is in response to the revenue collection strategy 2019-2023. Registered taxpayers who receive digital

goods/services or E-commerce activities from a non-resident, whether the non-resident has registered for VAT or not, will need to

pay 10 percent VAT to the GDT on behalf of the non-resident under a VAT reverse charge mechanism.

2022

Cambodia Digital Government Policy 2022-

2035

Aims to build a smart government based on the use of digital infrastructure and technology as an ecosystem for governance

system modernization and reform in a transparent and credible manner to develop an inclusive digital economy and society.

2022

Cambodiatrade.com to promote E-commerce

and get ready to export local products to

foreign market

The platform is launched by MoC enabling artisans, retailers, social enterprises, and manufacturers to make the transition from

conventional business operators to global entrepreneurs. It has spawned out of a public-private initiative and brought onboard a

myriad of pandemic-hit micro-, and small-and-medium enterprises (MSMEs) with over 1,000 local products on display.

2022

MoC has signed MOU with Swisscontact to

initiate a project entitled‘SeT4SME’fortrade

and E-commerce development

A two-year project (2021-2022) for the Alliance, implemented by Swisscontact in partnership with the Ministry of Commerce (MoC).

This project aims to support Cambodia in improving its trade performance and driving inclusive growth in the country by enhancing

trade facilitation implementation with more transparency in trade practices and reduced time and cost of cross-border e-trade. It

will also support the interphase of the GDCE Customs Clearance System and Cambodia Post CDS system for faster clearance of

low-value shipment

A summary of relevant government policies, legal framework and initiative to promote Digital Economy and E-commerce in Cambodia are listed below:

Government Initiatives [4/4]

E-commerce in the ASEAN Region [1/2]

Source: ASEAN Insider, Electronics Transactions Act.

Cambodia Laos Myanmar Thailand Vietnam

Responsible ministry (Name of ministry) - Ministry of Commerce

- Ministry of Posts and

Telecommunications

- Ministry of Industry

and Commerce

- Ministry of

Technology and

Communications.

- Department of

Trade under

- Ministry of

Commerce.

- Ministry of

Commerce

- Office of the

Consumer

Protection Board

- The Ministry of

Industry and Trade

E-commerce Law (year enacted) Enacted in 2019 Decree on Electronic

Commerce, 2021

Draft E-commerce

Guideline, 2020

Electronics

Transactions Act,

enacted in 2001

Decree on E-

commerce, 2013

Consumer protection Law (year enacted) Enacted in 2019 Enacted in 2010 Enacted in 2019 Enacted in 1979 Enacted in 1999

VAT on E-commerce (yes/No) Yes Yes No Yes Yes

Data Protection Law (Yes/No) Yes (a part of E-

commerce law in 2019)

Yes, enacted in 2017 No Yes, enacted in 2019 Yes, Draft degree on

Cybersecurity in 2019

E-commerce in the ASEAN Region[2/2]

Source: ASEAN Insider,.

Brunei Indonesia Malaysia The Philippines Singapore

Responsible ministry (Name of ministry) Ministry of Transport

and Info-

communications

- Ministry of Trade - Ministry of

Domestic Trade and

Consumer Affairs

- Various ministries,

depending on the

industry of

E-commerce

- Ministry of Trade

and Industry

E-commerce Law (year enacted) No Enacted in 2020 Electronic

Commerce Act,

2006

Enacted in 2000 Enacted in 2020

Consumer protection Law (year enacted) Enacted in 2011 Enacted in 1999 Enacted in 2012 Enacted in 2018 Enacted in 2003

VAT on E-commerce (yes/No) No Yes Yes, GST (Goods and

Services Tax)

Yes Yes, GST (Goods and

Services Tax)

Data Protection Law (Yes/No) No Part of Law on

Electronic

Information and

Transactions, 2016

Yes, enacted in 2010 Yes, enacted in 2012 Yes, enacted in 2012

THREATS

OPPORTUNITIES

WEAKNESSES

STRENGTHS

Source: TRC, Phnom Penh Post, Khmertimes, UNCTAD, UNICEF

• Consumer still prefers

traditional markets or

retail stores

• IT infrastructure and

trained IT

professionals

• E-commerce

penetration outside of

the capital city

• Infrastructure and

logistics

• Cash-based culture

• Adoption of E-

commerce tools:

Google Friendly

Content Marketing,

SEO

• Potential for export

and cross-boarder E-

commerce

• Government initiatives

and partnership

strengthening

• Large pool of young

population that drives

E-commerce (<25 years

old) cover 60% of the

total population)

• Growing internet

subscribers base (from

8.1 million in 2016 to 18

million in 2022)

• Strong government

initiatives

• Cheap data plan

• Competition

• Fraud

• Low barriers to

entry for

international

players

• Monopolies

Cambodia E-commerce Ecosystem SWOT

E-COMMERCE

Banking and

Payment

Gateways

Insurance

Education

Logistics

Ride-hailing and

Transportation

Fashion

E-Commerce Ecosystem

*The above-mentioned are only industries highlighted in this report

Food and Grocery

Delivery

Healthcare

Media and

Entertainment

Beauty and

Cosmetics

SURVEY METHODOLOGY

Takeo: 4.19%

Sihanoukville: 2.79%

Phnom Penh: 38.66%

Battambang: 9.98%

Siem Reap: 12.71%

Others: 31.67%

Full-time workers

49.83%

Self-employed

20.76%

Students

19.03%

Unemployed

5.46%

Part-time workers

3.79%

Freelancers

1.13%

<250 251-500 501-750 751-1000 1001-1500 >1500

67.27%

25.15%

3.66%

1.60%

0.93%

1.40%

Over 90% of respondents have a monthly income of

USD 500 or less

Men

66%

Women

34%

The survey was completed by 66% of men

and 34% of women with a total number

of respondents of 1,503 across cities and

provinces in Cambodia shop online at least

1 time per month.

Thetopthree(3)jobstatus’ofrespondentsarefull-time workers, self-employed, and students.

56.09%

18.56%

13.44%

6.85%

5.06%

18-24 25-29 30-34 35-39 40+

The majority of

respondents were between

18 to 29 years old. This

age range accounts for

more than 70% of

the sample size.

*The survey was distributed online by Standard Insights, through advertisements across social media platforms. The questionnaire was provided in Khmer.

SURVEY

TIMELINE

July 21st

July 29th

n= 1500

Survey Responses - Generic Insights about Online Shopping [1/2]

1 2 3 4 5 6 7 8 9 10

24.22%

24.62%

17.30%

6.32%

14.24%

2.13%

2.06%

2.26%

0.80%

6.05%

If you were to browse an online shopping

platform 10 times, how many times

would you actually purchase something?

Others

Less variety of products

Data privacy concern

Limited payment option

Poor customer services

Complexity

High price

Extra delivery fee

Safety

Slow delivery

No refund/return policy

Fake advertisement

Lack of trust

2.40%

4.72%

6.59%

8.92%

9.51%

9.65%

9.78%

15.57%

21.62%

23.15%

24.88%

32.67%

46.24%

What are your challenges for online

shopping/payment/booking?

Overall Male Female 18-29 y.o 29+ y.o

3.35

3.37

3.31

3.4

3.19

6.65

6.63

6.69

6.6

6.81

Comparison of purchase average

out of 10 times when browsing

Actual Purchase From Browsing

Not Purchase While Browsing

Out of 10 times browsing an online platform,

close to half of the respondents do actual buy

either 1 or 2 times.

Respondents have a higher tendency to

window shop when browsing online without

purchasing a product. Some may come back

several times on a platform to check a product

before actually purchasing it.

Average frequency of actual purchases from

browsing is lower than no purchases.

The reason for a low level of online purchases

may be explained because of trust or

transparency.

The top two challenges highlight a deep

distrust of respondents of the online world as

well as fear of fraudulent tactics (fake ads)

which may be used to deceive them into

buying/paying for online products/services.

Survey Responses - Generic Insights about Online Shopping [2/2]

Sales agents

Below USD

USD 11-50 USD 51-100 USD 101-

200

Over USD

200

36.86%

48.70%

10.31%

2.46%

1.66%

On average, how much of your

monthly budget do you spend or

allocate for online shopping?

Others

Insurance

Investment

Transportation

Medicine

Groceries

Entertainment

Education

Food

Cosmetics

Fashion & Apparel

6.45%

1.80%

3.79%

4.79%

7.12%

7.52%

11.58%

14.17%

25.08%

34.73%

75.91%

What do you tend to purchase the most online?

Others

Accepts many payment options

Easy-to-use application

Fastcheckoutandpayment…

New experiences

Ease-of-use

Fast delivery windows

Cheaper pricing

Greater variety of goods

Many Promotions/Discounts

6.12%

11.84%

13.44%

14.70%

24.35%

27.01%

32.27%

36.13%

37.39%

55.95%

What benefit(s) about online shopping make it

your or one of your preferred platforms?

An overwhelming majority of participants often buy

fashion and apparel through online channels. Insurance

is the product bought online the least, people still prefer

buying insurance products offline/in-person (68%) than

through online channels.

Almost half of

the survey-takers

spend between

USD 11 to USD 50

on online

shopping,

compared to

about a third

who allocate less

than USD 10.

When talking about the benefits of online shopping,

securing a lot of promotions/discounts tops the list as

it was the mentioned the most by respondents,

followed by a greater variety of goods and cheaper

pricing.

Cambodians have favorite online platforms to use when it comes to each industry. Foodpanda is especially preferred

over others when people search for food or groceries even though respondents still prefer shopping for groceries in

person (64%) likely due its perishability, while Facebook dominates cosmetics, medicine and fashion areas.

Industry Focus

PAYMENT GATEWAY

BANKING / ONLINE

Industry Overview | Banking/Online Payment Gateway

Source: NBC, ABC, VISA, Phnom Penh Post,PROFITENCE’sAnalysis

• National Bank of Cambodia (NBC) is focusing on promoting online payment in Cambodia through its creation of the Bakong system (2019), by 2021 there were 287,558

registered accounts, and 55 bank and financial institution members.

• In 2021, Bakong operated 8.16 million transactions (80% in USD) with a USD transaction volume of USD 2.89 billion, an 8,200% increased from 2020.

• NBC’sKHQRhasbeenwidelyadoptedin2022,facilitatingcross-bankpayment.

• Currently, NBC is working with the Techo Startup Center (TSC) of the Ministry of Economy and Finance to implement electronic know-your-customer (e-KYC).

• As of December 2021, there are 154,842 credit cards, 4,043,822 debit cards and 10 million bank depositor accounts.

E-PAYMENT TRANSACTIONS

2021 2022

40%

68%

85%

93%

Cambodia Southeast Asia

NUMBER OF CARDS

CASHLESS PAYMENT ADOPTION

Worth in 2021.

$102 billion

Increased since 2020.

34.5%

MARKET UPDATE

MARKET TRENDS

§ Cashless payment adoption in Cambodia has grown from 40% in 2020 to 68% in

2021. This trend will continue to rise as more than 40% of consumers plan to use

cashless payments more often in the future, according to a VISA survey.

§ Covid-19 initially encouraged cashless payments as consumers are worried

about Covid exposure. Especially across the capital, cashless payment has

become the new normal after consumers experience its ease of use.

§ Banks and financial institutions are promoting QR code payment for consumers

and merchants.

• QR code usage in Cambodia has gained popularity; with 4.4 million

transactions worth approximately USD 233 million in 2021.

• Synergized with KHQR, usage of QR codes will continue to grow higher.

Millions

2016 2017 2018 2019 2020 2021

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

10%

15%

20%

25%

30%

35%

40%

45%

50%

18%

20%

21%

45%

Credit cards Debit card

Growth rate

ACLEDA ABA Wing

Year Established 1993 1996 2009

Year released app on

Google Play Store

2017 2014 2016

Market Coverage

(As of Dec 2021)

262 branches

Cambodia

81 branches

Cambodia

1 branch + over 10,000 Wing agent

100% coverage of the districts in Cambodia

Number of ATMs and

point of sale (POS)

(As of Dec 2021)

909 ATM terminals

4,462 POS

612 ATM terminals

3,290 POS

2 ATM terminals

13,699 POS

Offered Services

• Deposits

• Loans

• Cash management

• Money transfers

• Trade Finance

• Digital banking

• Other

• Deposits

• Loans

• Money transfers

• Payment

• Self-banking

• Digital banking

• Other

• Deposits

• Loans

• Money transfers

• Credit referral services

• Payments, WingPay

• Corporate services

• Other

Debit cards issued

(As of Dec 2021)

1,518,387 debits cards 1,436,167 debit cards N/A

Leading Industry Players | Banking/online payment gateway

Source: NBC, Company Information

Traditional banks have expanded into digital banking through the use of innovative API integration, mobile banking and strictly digital products.

Survey Responses | Banking/online payment gateway

62% of respondents own at least one bank account. Consequently, cash payment for online shopping is slightly above 40% which meaning almost 60% of

respondents use online payment methods for online shopping. To explain their preference for the payment methods they chose, convenience/comfort is the top

reason, and another priority of respondents is safety. Nationwide, slightly over half of the respondents seem to use Wing as a payment method for their online

shopping (53%), however cash is still preferred by a majority of them (42%).

No, I do not

own a bank

account

38%

Yes, I own at

least one bank

account

62%

Banking Account Ownership

1.80%

5.26%

15.64%

35.73%

41.58%

When shopping online, what type of

payment do you prefer the most?

Cash

Debit Card

Other

QR Code

Mobile Phone transfer

Wing

ABA

Cash on Delivery

ACLEDA

True Money

Visa/ Mastercard

Bakong

Other

53.09%

38.52%

32.27%

17.96%

7.58%

3.39%

2.26%

4.01%

When shopping online, what payment

method do you use?

Convenience

Safety

Flexibility/Adaptability

Speed

Acceptability in most places

Other

60.21%

28.88%

4.13%

3.93%

2.46%

0.40%

Why do you prefer

this type of payment method?

Industry Analysis

Source: NBC, Surveyresults,Expertinterview,PROFITENCE’sanalysis

10,11,501 60%

Bank deposit accounts Bank penetration

(2021, traditional banking)

More unique user data points on bank

penetration are necessary for governments and

private players to strategize and improve financial

inclusion. Disaggregated data on different types

of accounts across different types of financial

institutions should be more readily available.

• Consumers need to become more

educated on financial services and

digital literacy

• More payment methods need to be

increasingly integrated across all

industries.

For online payment methods to be

even more prevalent:

Mobile banking transfer has dominated

visa/master cards

4-6 years ago, only Visa/Mastercard were available as payment for

E-commerce. Nowadays, transferring money through mobile app

become more popular for domestic E-commerce payments. 70% of

all visa/Mastercard purchases in Cambodia were used for

international marketplaces.

Based on our survey results, respondents explain

that convenience and safety are the top 2

reasons for their payment preference of choice.

Has acted as a catalyst to improve financial inclusion over the last 2 years.

Individuals may not have bank accounts, but can still access digital payments through

their Bakong wallet directly.

KHQR paved the way for smaller banks or late adopters to participate

in the market. Bakong has had successful integration across different interfaces, and

banks, significantly improving digital payments across multiple platforms.

From our results, although respondents often

use Wing to pay for their online orders (53.09%)

Cash is still preferred by a majority of them

(41.58%). Specifically, cash is prioritized while

purchasing food (51.08%) and

groceries (40.61%).

Seems to be the preferred payment option for

online clothes.

Its important to note that Cambodia has become a

hub for innovative digital payment solutions. As a

fundamental building block of an E-commerce

ecosystem, digital payments are no longer an issue for

domestic E-commerce. Consumers have numerous

non-banking options as outlined above. Although not

adequately regulated, there is a growing interest in

digital currencies, such as bitcoin, amongst the

younger Cambodia demographic.

FOOD AND GROCERY

DELIVERY

Industry Focus

Industry Overview | Food and Grocery Delivery

Source: B2B CAMBODIA, Statista1, Statista2,PROFITENCE’sAnalysis

MARKET UPDATE

• Gross merchandise value (GMV) of online food delivery was projected at USD 22.35 million in 2022, at an 8% growth rate, with approximately 1 million users.

• GMV is forecasted to reach USD 33 million in 2026 with a CAGR of 8% in 2022-2026.

• The8%growthratein2022islowerthanSoutheastAsia’sGMVgrowthrateof16.5%implyingthatCambodia’s market has under-performed compared to the region.

• The average revenue per user (ARPU) in the online food delivery is projected at USD 29.35 annually in 2022.

• There are many local and international players, yet the market is operated in an oligopoly structure where, less than 5 companies capture most of the market share.

MARKET TRENDS

GROSS MERCHANDISE VALUE (GMV)

§ Cash and online payments are close to being balanced. On average,

payment for food and grocery delivery services are 55% cash on delivery and

45% online.

§ Growth has slowed down significantly in 2021 and 2022 in contrast to the

high growth experienced in 2018.

§ In 2022, slow growth can likely be attributed to eased restrictions on

dining-out and people generally feeling safer in public spaces.

§ The industry has high growth potential. In order to capitalize on this, in 2022:

§ Businesses in the food delivery sector are beginning to expand into

other product offerings such as groceries, cosmetics, home goods,

electronics, pharmaceutical products and more.

§ Businesses are expanding into other provinces and key cities as these

are largely untapped markets.

§ There is high competition in the market and several top companies are

offering lots of promotions and discount to attract users.

“

- Sai Kiran Singanamala, Head of Innovation and Growth, Hungry?

Post-easing restrictions, a lot of customers flooded to eat out as they were unable to do so for a

along time, which decreased demand for food deliveries. However, the orders have not dropped

to pre-COVID levels but rather plateaued at a new baseline which, in most countries, is still 2-3

times higher than pre-COVID levels.

While growth may seem slow as a % of overall delivery orders, in absolute terms it is indeed

higher. That being said, grocery deliveries on the other hand, are growing both in % and absolute

terms.

In Millions USD

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

40 100%

80%

60%

40%

20%

65%

46%

54%

25%

Gross Merchandise Value Growth rate

CAGR: 8.4%

Foodpanda Nham 24 WOWNOW

Year Established 2019 2015 2020

Market Coverage Phnom Penh + 14 provinces Phnom Penh + 11 provinces Phnom Penh + 3 provinces

Payment Options

Cash on Delivery, ABA, Union Pay,

Master/Visa Card.

Cash on Delivery, ABA, ACLEDA Bank, Alipay, Chip

MongPay, e-money, Master/Visa Card, Phillip Bank,

Pi Pay, Sathapana Bank, WeChat Pay.

Cash on Delivery, ABA, Master/Visa Card, Union

Pay, in-app Wallet, WeChat Pay, Wing Pay.

Offered Services

• Food, drink, grocery

• Cosmetics

• Electronics, home goods

• Flower

• Bakery

• Pharmaceutical products

• Other

• Food, drink, grocery

• Flower

• Beauty & Fashion

• Pharmaceutical products

• Stationery & Electronics

• Pets products

• Bakery

• Other

• Food, drink, grocery

• Electronics, home goods

• Flower

• Pharmaceutical products

• Cosmetics

• Online shopping (overseas and domestic)

• Hotel booking

• Online payment services

• Other

Marketing Strategy

Promo code, buy 1 get 1, social media

influencers, discount, free delivery,

coupons, invite friends, etc.

Promo code, buy 1 get 1, social media influencers,

discount, free delivery, coupons, membership,

referral, free delivery for USD 20+ order, etc.

Promo code, buy 1 get 1, social media influencers,

discount, coupons, lucky draw, invite friend, etc.

Leading Industry Players | Food and Grocery Delivery

Source: Company Information

There is a high level of competition in the food delivery market, primarily dominated by a few international players and a few local players.

Delishop Grocerdel AEON Online

Year Established 2019 2019 2019

Market Coverage Phnom Penh, Kampot, Siem Reap Phnom Penh

Phnom Penh

(Delivery to 23 provinces/cities)

Payment Options

Cash on delivery, Wing, ABA, VISA,

Mastercard, UnionPay, JCB and KHQR

Cash on delivery, Pi Pay, ABA, VISA, UnionPay or

Mastercard, QR code scan upon arrival.

Cash on delivery, VISA, Mastercard, AEON point

card.

Offered Services

• Nuts & seeds,

• Vegetable &Fruit,

• Bakery

• Covid-19 protection product,

• Meat,

• Beverage & alcohol,

• Pet product,

• Kid product,

• Tech Accessories

• Other

• Bakery

• Fruit

• Vegetable

• Alcohol

• Beverages

• Dessert

• Kid products

• Other

• Grocery

• Meat & fish

• Fruit & vegetable

• Kids and baby products

• Pet products

• Electronic

• Stationary

• Fashion and sport

• Other

Marketing Strategy

Free delivery for USD 50+ order, discount,

fast delivery, buy 1 get 2, etc.

Discount, free delivery, promo code, plastic-free

package, fast delivery, refer friends, etc.

Discount, give away, answer questions to win

prize, lucky draw, social media influencers, etc.

Leading Industry Players | Food and Grocery Delivery

Grocery delivery is dominated by food delivery apps while dedicated online grocery platforms are still nascent and largely still operate as local start-ups.

Source: Company Information

Survey Responses | Food and Grocery Delivery

Foodpanda Nham24 Wownow Bloc Wing Hungry? E-gets Grab Other Don't shop

online

47.09%

15.77%

12.11%

10.91%

6.59%

3.59%

3.46%

1.53%

2.93%

32.00%

On what online platforms do you often purchase food?

Over 15

10 to 15

4 to 9

Less than 3

2.25%

1.76%

13.01%

82.97%

On average, how often do you

order food online in a week?

In regards to items which tend to be purchased the most online, people residing in Phnom Penh (37%) are more likely to buy food online than those living in Battambang (23%),

Siem Reap (26%) and other cities (13%). To pay for food delivery, 51% of the participants pay cash upon delivery, followed by ABA (43%), Wing (30%), and ACLEDA (15%)

and females (60%) are much more inclined to pay by cash than males (47%).

• Among those who order food online, the frequency to do

for a majority of them (83%) is less than 3 times a week.

• It is notable that male survey-takers, order food more

frequently than female ones and older respondents (above

29-year-olds) have a higher likelihood to do so compared to

younger respondents.

• Foodpanda has become the most popular online platform used by respondents, creating a significant

gap with its competitors in this online platform race.

• 32% of the respondents answer that they do not go on online platforms to order food.

• Interestingly, the platforms that are favored by major city residents differ. Residents of Phnom Penh's

are inclined to choose Nham24 and Wownow (20%), those in Battambang opt for Wing (13%) and

people living in Siem Reap prefer Wownow (15%).

Survey Responses | Food and Grocery Delivery

The survey results show that food delivery apps, which also provide grocery delivery, gains popularity in online grocery market while online presence of traditional supermarket is far

less popular. To pay for their groceries, more than 2 in 5 Cambodians (41%) use cash, followed by ACLEDA (36%) and ABA (16%).

I prefer to buy

grocery in-store

63.54%

I prefer and normally buy

groceries online

24.62%

I prefer to buy grocery

in-store but I normally

buy grocery online

11.84%

Where do you normally buy groceries and

what is your preferred platform to buy

groceries?

Foodpanda Wing Nham24 Wownow E-gets Aeon MAKRO Delishop Other Don't shop

online

35.93%

10.58%

8.72%

3.46%

1.80%

1.53%

1.40%

0.33%

3.59%

32.67%

Online Platforms for purchasing groceries

Convenience

Freshness

Habit

Quality of products

Variety of products available

Better prices and offers

Payment method available

Other

49.17%

26.28%

11.64%

5.12%

3.86%

2.33%

0.40%

1.19%

Most important reasons when choosing

places/platforms for groceries

Almost 2 in 3 Cambodian respondents say

they buy groceries in-store, compared to

about one third who buy groceries online.

• Convenience is the top reason why respondents chose

the places/platforms for grocery buying, follow by

freshness and habit.

• Payment method available is chosen the least as

consumers have multiple options; to pay online or cash on

delivery.

• Foodpanda remains the top platform for

online groceries.

• Wing and Nham24 are the top 2 and top 3

choices, respectively, from respondents in

Food and Grocery delivery.

• Phnom Penh respondents prefer Nham24

(10.50%) over Wing (6.54%).

Industry Analysis | Food and Grocery Delivery

Source:PROFITENCE’sAnalysis

Today, for the industry to achieve higher growth in the new normal:

Old players need to prevent customers from switching to other apps by:

• Managing good customer relationships to build loyal customers (do not rely only on

promotion to boost Gross Merchandise Value).

• Innovating new features such as

 Integrate the option to add more than one restaurant/location into one delivery.

 Consider integrating with ride-hailing services to compete with super-apps.

Newcomers have the advantage of entering an already existing educated consumer

base. However, they may face difficulty in convincing loyal consumers from existing apps.

Newcomers need to plan and implement marketing strategies such as

 Leverage using influencers and any marketing strategies to appeal to a majority of the

younger population.

 Offer competitive promotions.

Convenience

Freshness

Habit

are the top 3 reasons why

respondents choose

places/platforms for grocery buying.

64%

respondents

prefer to buy

groceries

in-store

25%

prefer to shop

through online

channels.

12%

remaining like to buy groceries

in-store but often

buy them online.

Consumers have been educated.

Entry of international firms helped promote and educate

Cambodian consumers about food and grocery delivery

practices. A large number of first-time users before and during

the pandemic has created a solid educated consumer base in

the city. This indicates that the industry is approaching its

maturity stage.

High competition

There are numerous similar delivery service companies in the

market plus restaurants and supermarkets are expanding into

online stores providing self-delivery services. Consumers have

many alternative choices in ordering food or grocery online.

Grocery delivery is still in the growth stage.

INSURANCE

Industry Focus

Industry Overview | Insurance

Source: TheLawReviews, B2B Cambodia, IRC Annual report, IRC1, IRC2,

• Insurance total gross premiums reached USD 298 millions in 2021 (9% rise from 2020). Insurance density reached USD 18.75 per capita with penetration rate of 1.11% in 2021.

• Asub-decreeoninsurancewasissuedin2021toguaranteegoodgovernance,efficiency,freeandfaircompetition,andtoprotectinterestsandgainthepublic’strust,in

compliance with the Law on Insurance.

• Cambodia Strategic Development Plan for Insurance sector 2021-2030 was adopted by the Non-Bank Financial Service Authority Council in September 2021, targeting 5.5%

insurance penetration rate and USD 135 for insurance density in 2030.

• The strategic plan prioritizes on strengthening Insurance Regulator of Cambodia (IRC), strengthening capacity and contribution of private sector to the insurance

sectordevelopment,establishing“NationalInsuranceSchoolorInstitute”,andlaunchingasystemofcompulsoryinsuranceforalltypesofmotorvehicles.

MARKET SIZE

2017 2018 2019 2020 2021

$ 5.00

$ 10.00

$ 15.00

$ 20.00

0.50%

1.00%

$ 10.06

$ 12.80

$ 16.24

$ 17.30

$ 18.75

0.69%

0.80%

0.93%

1.04%

1.11%

Insurance Density and Penetration rate

Insurance Density

Insurance Penetration

Rate

Millions USD

2017 2018 2019 2020 2021

300

200

100

0 0%

10%

20%

30%

40%

29%

Total Insurance Premiums Value

Micro Insurance

Life Insurance

General Insurance

Growth rate

§ Life insurance has captured a majority of the insurance market share since

2018, in 2021 it captured 57% of the market (IRC Annual Report).

§ High market share of life insurance results from many leading

international life insurance companies entering the Cambodia market

after life insurance was introduced in 2012.

§ Insurance premiums were severely interrupted in 2020 and 2021 by the

pandemic resulting in slower growth compared to 2018 and 2019.

§ Despite product information and availability online, consumers still call

customer service or visit the office to check and make the purchase due to a

lack of trust.

§ Insurance Selling Machines (ISM) were introduced by Prudential in 2022 to

make protection solutions accessible for more Cambodians.

§ Insurance companies are focusing on digitalization by expanding into

bancassurance business.

§ Partnering with financial institutions allows customers to pay

insurance premiums online and offering fully digital insurance.

§ Using insurance technology (InsurTech) such as data analysis and AI

to improve user experience and acquire more customers.

MARKET UPDATE

MARKET TRENDS

Prudential Manulife FORTE

Year Established 2013 2012 1996

Market Coverage

Phnom Penh, Battambang, Siem Reap, and

Kratie.

Phnom Penh, Kampong Cham, Preah Sihanouk,

Siem Reap, Banteay Meanchey, and Battambang.

Phnom Penh, Siem reap, Battambong, Kampong

Cham, and Kampot.

Payment Options

ACLEDA bank, Wing bank, ABA bank,

Sathapana bank, Canadia bank, Cambodian

Public bank, PPCBank, JTrush Royal bank.

Cash/cheque at Manulife offices, Sathapana bank,

ABA bank, CIMB bank, FTB bank, J-Trust Royal

bank, May bank, CAMPU bank, Phillip bank.

Visa, JCB or Master Card, Cambodian Public bank,

Amret Microfinance, Wing bank, Pi Pay, ABA bank,

ACLEDA bank, Sathapana bank.

Offered Services

Life insurance

• Bite-sized insurance

• PRUMySafety

• PRUTector and PRUDailyProtect

• PRUអនាគតកូ នខ្ ញុ

ំ

• PRUទ្ រព្ យខ្ ញុ

ំ

• SafeLife

• Loan Safe

• PRUTector and PRUMyHealth.

• Insurance Selling Machine (ISM)

Life insurance

• Manulife Savings Protector

• Manulife Education Protector

• Manulife MediCash

• Manulife Child Protection Benefit

• Manulife Critical Illness Benefits

• Manulife Boribo

• Manulife Family Protector

• Manulife Home Loan Protector

• Manulife Group Protector

• Manulife Group Protector (For Group Credit

Life).

General insurance

• COVID-19 insurance

• COVID-19 outbound insurance

• Personal accident & IEMA insurance

• Travel insurance

• Personal accident insurance

• Fire insurance

• Figtree blue insurance

• Traveller’sinsurance

• Medi+ insurance

• Automobile insurance

• Corporate insurance

Market Strategy

Rewards, educational contents, free health

tracker, social media posts etc.

Lucky draw, educational content, discount

programmes, social media posts, etc.

Lucky draw, special events/rewards, social media

posts, educational content, etc.

Digital Integration

Status

Fully integrated

(Buy and pay online)

Partially integrated

(Online payments)

Fully integrated

(Buy and pay online)

Leading Industry Players | Insurance

Source: Company Information

The industry is competitive; top international brands capture most of the market share in the Kingdom.

Survey Responses | Insurance

In regards to items which tend to be purchased the most online, insurance is the product bought the least (1.80%), which means that people prefer buying insurance products

offline/in-person (67.97%). It is also notable to observe that 17.32% of respondents that own at least one insurance product have bought from different companies other than the

ones displayed in the survey.

Other

Renters insurance

Disability insurance

Umbrella/personal

liability insurance

Home insurance

Phone insurance

Vehicle insurance

Travel insurance

Health insurance

Life insurance

None

1.20%

0.80%

1.13%

1.73%

1.80%

2.86%

4.13%

18.63%

22.16%

59.28%

Insurance Product Ownership

Prudential Manulife AIA BIMA Forte Infinity Mekong FWD Other

37.25%

15.03%

14.87%

9.97%

8.17%

5.23% 5.23%

2.94%

17.32%

From which company

the insurance product were bought?

38.89%

22.39%

17.65%

17.16%

8.99%

7.68%

5.88%

5.72%

2.45%

1.96%

0.65%

Most important influences when choosing an Insurance Company

Online Advertisement

Sales agents

Workplace

Family

Friends Road

banners

Travel

requirements

Events Other Radio

In-Person

Mobile app

Phone call

Other

Website

67.97%

20.75%

7.52%

2.78%

0.98%

Preferred Method to buy

Insurance

• More than half of respondents

answered that they do not own

any insurance product.

• Among those who own an

insurance product, life insurance

and health insurance top the list,

which may see a sharp rise given

the pandemic outbreak.

• Furthermore, Prudential is by far

the most bought insurance

product company, followed by

Manulife and AIA.

Industry Analysis | Insurance

The total value of Insurance Premiums are equivalent

to 1.11% of Cambodia’s GDP.

According to our survey,

3 out of 5 people do not own any insurance

policies. Approximately 20% of respondents have

bought life insurance, followed by health insurance at

approximately 18%. For this number to grow,

Cambodian consumers need more education on the

benefits of insurance policies, and must be given a

variety of Insurance products (short and long-term).

1.11%

Insurance

Penetration

Rate

Sales channels for insurance:

Marketing strategies bring more visibility to get the policies sold, and

the most important influences are:

It highlights the importance given to digital marketing campaigns to

have higher visibility and catch the target audience's attention.

Insurance digitalization

During the introduction of digitalization (last 2 or 3 years

ago), a mobile application for insurance was introduced.

From fully relying on purchasing insurance policies through

agencies or at the office to being able to buy insurance,

manage, and submit claims on a mobile app, this trend is

currently available to some insurance companies in

Cambodia.

Additionally, Insurance Selling Machine (ISM) for

purchasing insurance is launched in the market targeting

the young population in the country.

online advertising,

sales agent,

and workplace referral.

Gap in Out-of-Pocket Expenditures and

Insurance Penetration.

Most recent available data for Out-of-pocket healthcare expenditure in

Cambodia was approximately USD 948 million in 2019, highlighting the

population’s willingness to pay*. In comparison to Insurance

penetration, there is a wide spending gap present, showcasing a huge

opportunity for insurance players.

*The number has since grown, but no government verified data is available.

ONLINE EDUCATION

Industry Focus

Industry Overview | Online Education

Source: The Phnom Penh Post, Khmer Times, Statista,PROFITENCE’sanalysis

• As a result of its novelty, there is a significant lack of data surrounding Online Education in Cambodia. This section focuses on Southeast Asia instead to get a better glimpse

of progress in this sector as a whole, and its implications for education in Cambodia.

• Southeast Asia (SEA) revenue in the Online Education is estimated at USD 1,485 million in 2022, a 20% growth from 2021, forecasted to reach USD 2,555 million in 2026.

• This market size in 20222 is made up of Online Learning Platforms (51%), Online University Education (46%), and Professional Certification (3%).

• The average revenue per user (ARPU) in online education, in Southeast Asia, is projected at USD 55.78 in 2022.

• Cambodia’seducationsectorisworkingtowardsdigitalreforminlinewiththeDigitalEconomyandSocialpolicyframeworkofCambodia(2021-2035).

SOUTHEAST ASIA MARKET SIZE

§ The region has observed high growth for online education, and Cambodia is

likely to follow this trend.

§ In S.E.A., growth peaked at 31% in 2020 resulting from the pandemic. It has

maintained a growth rate above 20% until 2022.

§ While direct payment was more common, many private schools and

universities are partnered with local banks, making tuition payment online

and more convenient.

§ Part of market share in higher education level is captured by international

online courses platform as it is accessible by students globally with

thousands courses available, while local firms offer limited courses.

§ The pandemic provided the opportunity to unlock digital learning across

education levels. Over the last two years, no less than 3 million students out

of nearly 4 million studied online.

§ As students have experienced online learning during the pandemic,

according to our survey, 78% of students prefer blended learning and 14%

prefer more online education while 6% does not prefer online education.

MARKET UPDATE

MARKET TRENDS

Millions USD

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

300

600

900

1200

1500

1800

2100

2400

2700

10%

15%

20%

25%

30%

35%

11%

19%

31%

25%

20%

S.E.A. revenue in Online Education

Professional Certificates Online University Education

Online Learning Platform Growth rate

CAGR: 11.5%

E-School Cambodia OneSala Coursera

Year Established 2018 2020 2012

Market Coverage Cambodia Cambodia Worldwide

Payment Options

ABA, ACLEDA, Canadia, Chip Monk, Wing,

True money, and E-money.

Wing,ABAPAY,Credit/DebitCard,andOnesala’s

Point

Visa, MasterCard, Discover, JCB, American

Express, PayPal, and other options depend on

countries.

Offered Services

• Online education through Khmer K-12

• Languages training

• other

• Online course

• Kid education

• One2Share - OneSala TalkShow

• OnePress

• Other

• Online course

• Online degree

• Professional certificates

• Coursera Plus

• Other

Marketing Strategy

Partner with MOEYS, Discount, Free

contents, educational post, etc.

Free contents, scholarships and Job

announcements, discount, reward, etc.

Free course, advertisement, discount, etc.

Service platforms App App Website/App

Leading Industry Players | Online Education

Source: Company Information

Online education in Cambodia is a nascent industry. Local players are small because most students still rely on schools/institutions and employed consumers usually go for

international platform to develop new skills for their careers.

Survey Responses | Online Education

Yes

46%

54%

Have you ever purchased any online

courses?

Other

Cambodia National Tax School

LinkedIn Course

CFA

Onesale

CamEd Business School

Skillshare

Coursera

Udemy

33.60%

4.20%

8.30%

12.50%

20.80%

37.50%

Which platform have you purchased online courses?

USD 0 <USD 10 USD 11-25 USD 26-50 USD 51-100 USD 100+

10.30%

17.20%

41.40%

20.70%

10.30%

How much do you spend on online courses, in USD,

per month?

Yes, once,

11.30%

Yes, twice,

6.50%

Yes, several

times, 9.70%

No, never,

72.60%

Have you ever purchased an e-book?

Yes, I would

prefer, 14.30%

No, I wouldn't

prefer, 6.30%

I prefer a hybrid

method, 77.80%

I don't have

any idea, 1.60%

Would you prefer education to be more

online in the future?

* Disclaimer: Survey for online education industry was conducted separately with 74 respondents of whom 94% reside in Phnom Penh. 73% of them are 18-24 years old.

Industry Analysis | Online Education

Source: Census Report 2019,PROFITENCE’sanalysis

25 years + 18-24 years 15-17 years 12-14 years 6-11 years

0.70%

20.70%

67.60%

91.60%

90.60%

Percentage of school attendance by age group

The pandemic has been a catalyst for a primarily

online education experience.

Online education was experienced by

students at all levels across the kingdom

during the pandemic. This opens a market

opportunity for online education businesses

to enter the Cambodian market, as students

have experienced and engaged in this

nascent industry.

Online certification platforms are now being appreciated

and accepted by companies when candidates apply for jobs. Most of the

players have emphasized certifications by industry like:

Google, LinkedIn, and other popular

universities like Harvard, and MIT have

gained huge popularity in the global online

education market.

Higher education online courses are

dominated by international players. Local

firms should improve their quality and

increase the number of demanded courses.

The largest consumer base of education are

students in primary and high school.

Over 90% of 6-to-14-year old's attend school,

indicating huge market potential in the education

industry below the high school level.

Recommendation: invite more players to build

digital learning platforms for primary

school and high school students.

LOGISTICS

Industry Focus

2007 2010 2012 2014 2016 2018

2.19

2.28

2.3

2.67

2.62

2.37

2.3 2.12

2.2

2.58

2.36

2.14

2.47

2.19

2.61

2.83

3.11

2.79

2.47

2.29

2.5

2.67

2.6

2.41

3.05

2.84

2.95

2.75

3.3

3.16

2.53

2.5

2.77

2.92

2.7

2.52

Logistics Performance Index Breakdown

Efficiency of customs clearance

Quality of trade and transport-related infrastructure

Price of Shipment

Competence and quality of logistics services

Frequency of shipments reach consignee within scheduled or expected time

Ability to track and trace consigments

Industry Overview | Logistics

Source: World Bank, Phnom Penh Post,, Statista, Cambodia Travel, Cambodia Investment Review, Cambodia’sPost,PROFITENCE’SAnalysis

§ Triggered by recent Russia-Ukraine affairs, hikes in global oil prices have placed pressure on fuel prices in

Cambodia. The president of the Cambodian logistics association said that the price of delivery services in

Cambodia has increased by approx. 15%-20%.

§ In line with our 2021 report, e-logistics has continued to dominate the market in 2022. Consumers still

order products from China, and Thailand, through agencies like Lazada, Alibaba, and others. Mobile apps

or websites and various e-payment methods are available at any delivery company.

§ According to the World Bank, Cambodia’s Logistics Performance is at an average level for the region.

Government initiatives will play a key part in its improvement.

§ For a well-developed E-commerce ecosystem to thrive in

Cambodia, it needs to be integrated with e-logistics.

§ The World Bank projected that by 2030, Cambodian firms

will move four times more goods through highways, ports,

airports, and warehouses, showcasing high growth in the

industry.

§ Cambodian Post has initiated the Express mail service

(EMS) and other e-logistics services for senders to track on

the web in 2020.

§ A Cambodian startup, Jalat, an all-in-one logistic portal, has

developed an AI-driven application showcasing Cambodia’s

emerging E-commerce sector in line with the government’s

Digital Economy and Society Policy Framework 2021-2035.

Traditional vs. e-Logistics

DISCLAIMER: Data on the Logistics sector is highly aggregated, and combines both Transport and Storage statistics

MARKET UPDATE

MARKET TRENDS

In the past, people used to send items

by traveling to the bus company or

drop the item the Cambodian Post.

Due to the limited reach of bares,

trains, and aircraft, most goods were

delivered by lorries.

For small quantities of goods, the

common transportation are small

trucks, vans, cars, and even

motorcycles.

Traditional

E-payment is there to make it easy to

transfer money.

Online booking to pick up items from

home is applicable on the mobile app or

website.

Tracking or tracing can be done online.

Now, consumers can see the price of the

items by adding weights and destinations

within a few clicks.

E-logistics

Joonaak Virakbuntham J & T Cambodia DHL Cambodia

Year

Established

2015 2004 2015 2016

Market

Coverage

Cambodia, Thailand, Vietnam, China

All provinces in Cambodia,

Vietnam, Thailand

All provinces in Cambodia,

Malaysia, Vietnam, Thailand, and

the Philippines

Phnom Penh, Sihanoukville, Siem Reap,

and 220 countries and territories.

Payment

Options

Cash, ABA

Cash, ABA, Visa & Master Cards,

Union Pay, JCB

Cash, ABA Cash, ABA, Visa & Master Cards

Offered

Services

• Shipping

• Express Delivery (Motor, Tuk Tuk)

• Pick up items

• Tracking

• Same day Delivery

• Others

• Rental Services (VET Bus, VIP

Minibus, VIP Minivan)

• Door-to-door pick up & delivery

• Book speed-boat

• Book bus ticket

• Others

• Order to pick up items

• Door-to-door pick up & delivery

• Shipping

• Tracking

• Others

• DHL Express Worldwide

• DHL Express at a specific time (12:00

& 9:00)

• Tracking

• Door-to-door delivery

• Others

Marketing

Strategy

$1-$7/kg, giveaway, free training

video, 5000 riels in Phnom Penh,

discounts, free pick up, etc.

Discounts, membership, games,

5000 riels in Cambodia, 3000 riels

in Phnom Penh, feature outlets,

series, etc.

$1-$7/kg, 4000 riels within city,

cross-border delivery discounts,

vouchers, super sales, etc.

Discounts, events, CSR activities, ESG

activities, games, seasonal posts,

feature outlets, etc.

Status of e-

logistics

Integrated Partially Integrated Integrated

In development, unavailable in

Cambodia.

Source: Company Information

E-logistics is a relatively new concept with a few players, where traditional logistics companies have dominated the market.

Leading Industry Players | Logistics

Survey Responses | Logistics

33.87%

Yes

66.13%

Willingness to pay an extra price

for faster/same-day delivery

With in 3 days

With in 2 days

With the day

6 hours

3 hours

1 hour

30 minutes

1.26%

20.16%

32.14%

2.40%

5.66%

14.97%

23.42%

Acceptable delivery time

I do not

use

logistics

services

1 to 3 4 to 7 8 to 12 13 to 16 over 16

20.23%

64.54%

9.38%

2.46%

0.80%

2.59%

Frequency to use logistics services per

month

Others

Cambodia Express

Power G

L192

Kerry

ZTO

Capitol

Private Taxi

J&T

Vireak Bunntham

3.08%

1.50%

2.75%

3.92%

4.34%

5.09%

5.59%

11.43%

11.59%

31.36%

70.06%

Logistics Company to use (Overall)

Male respondents tend to use logistics services more

than female respondents and Phnom Penh's

residents use the services more than those staying in

other cities.

• More than half of the respondents (56%) are

willing to accept the delivery time ranging

from within the day (32%) to 30 minutes (23%).

• When the waiting time extends further,

people seem to lose their patience.

• Remarkably, people residing in Phnom Penh

tend to prefer a 30-minute wait for their

packages to come (31%) more than within-the-

day deliveries (26%).

• Besides, in Battambang (27%), Siem Reap

(29%), and other cities (26%), people are more

willing to wait for their packages to come

later (within 2 days) compared to those living

in the capital (9%).

• Male respondents tend to use logistics services

more than female respondents.

• Phnom Penh's residents use the services more

than those staying in other cities.

• Female participants (45.91%) often opt for J&T

more than males (23.99%).

A vast majority of the respondents use logistics services between 1 and 7 times per month and Vireak Buntham is the most prefer logistics company. Regarding delivery time, 2 in 3 of

the respondents are willing to accept the delivery time ranging from within the day.

Industry Analysis | Logistics

Source:IndustryExpertInterview,PROFITENCE’sAnalysis

Companies should focus on niche markets.

Customers go to different apps for

discounts rather than focus on the

quality of the app. Inducting a loyal

customer base stands as one of the

key challenges within the competitive

logistics customer base.

In our survey, over 60% of the total respondents use logistics

services between 1 to 3 times per month.

There are 70% of them said they use Vireakbuntham and 31%

use J&T.

Vireakbutham is a dominant

player in the market whereas

J&T is the second key player although

it is an international brand.

Yet, both companies have many hubs

across the cities and provinces in Cambodia.

Existing and new companies should introduce the quick

commerce concept toadapttoconsumers’needs.

We have asked about the acceptable

timeframe of delivery, and 32% would

prefer within-a-day delivery followed

by 30 minutes delivery (23%)

Not only is it a good strategy for a

company to achieve customer

satisfaction, but 66% of respondents

are also willing to pay an extra

fee.

A successful strategy to help

boost sales for slow-growing

companies, especially as the fear of

COVID decreases.

Utilizing the

mobile payment

systems

working with

third-party

agents

This will enable the companies to resell

the tickets, which has helped to

increase the volume of sales.

Super app (all-in-one app)

Is a platform that includes both banking

merchants and logistics companies, has

created ease of payment for customers,

booking the tickets, or delivering the

products all in one place within a few

clicks. Companies who have the ability

to create one will have first-mover

advantage in Cambodia. We are already

seeing developments with local Super

apps such as Nham24.

TRANSPORTATION

RIDE HAILING/

Industry Focus

Industry Overview | Ride-hailing/Transportation

Source: Statista, Khmertimes, Phnom Penh Post1, Phnom Penh Post2, Value Champion, WACA,IEA, UNDP, UNFCC

• Revenue from the ride-hailing and taxi segment in Cambodia is projected to reach USD 21.37M in 2022.

• Singaporean-registered companies like Grab and Tada captured most of the market share although Passapp used to be the dominant player at the end of 2021.

• Online ticketing is dominated by local companies like Bookmebus and Camboticket.

§ Ride-hailing market is expanding towards super-apps where customers can

additionally order food and other products.

§ Companies are focusing on improving consumer experiences and safety;

reducing the number of clicks on your app and increasing identity

verification.

§ Competitiveness, rising oil prices, and government strategy/policy

encourage companies to expand to other verticals like electrical vehicles

(EV).

§ Online booking has rolled out even since 2016 to replace traditional hiccups

(vans, bus, motorbike, etc..), save time, and reduce the complexity of

negotiating the price.

§ According to our survey responses, most respondents still prefer their own

transportation although the ride-hailing market is growing.

§ Usage of ride-hailing apps is primarily concentrated in major cities. The

advent of using apps to book ride-hailing is still in its nascent stages across

less dense provinces.

14.69

16.27

17.84

14.48

18.43

21.37

23.79

25.33

26.87

28.43

Cambodia Ride Hailing & Taxi Market (in million USD)

7.9%

Cambodia

Market CAGR

(2022-2026)

2022 2026

2016

2019

Early

2022

Cab, tuk-tuk,

rickshaw, SUV car

Electric Vehicles (EVs)

Taxi-booking mobile apps

entered the market

MARKET SIZE

MARKET UPDATE

MARKET TRENDS

The revenues forecast show a promising future for ride-hailing in Cambodia and the Southeast Asian Region. Grab,

one of the leading players across Southeast Asia, has started operations in Cambodia. Rapid urbanization,

government initiatives, digital adoption, a young population, and e-payment option can be the factors to shift

consumer attitudes and behavior toward ride-hailing services.

Grab TADA PassApp Taxis LM Car

Year Established 2017 2019 2016 2020

Market Coverage

Myanmar, Vietnam, Thailand,

Malaysia, Singapore, Indonesia,

Philippines, Cambodia (Phnom

Penh, Siem Reap)

Cambodia (Phnom Penh, Siem Reap),

Singapore

Phnom Penh, Siem Reap,

Sihanoukville, Battambang,

Kampong Cham, Kampot

Phnom Penh, Sihanoukville

Payment

Options

Cash, Voucher, Visa & Master Card Cash, Visa & Master Cards, Voucher Cash, Visa & Master Cards Cash, Visa & Master Cards

Offered Services

• GrabFood

• GrabExpress

• JustGrab

• GrabRemorque

• Grab Maxima

• GrabSUV

• Grab TukTuk

• Travel

• GrabMart

• Grabbike

• Corporate

• Tuk Tuk

• ONion T1 (E-Tuk Tuk)

• Car

• SUV

• Express

• Students

• Rormork

Rickshaw

• Classic Car

• SUV

• Rental (Class, Deluxe, Business

Plus, First Class)

• Intercity service

• Airport Transfer

Marketing

Strategy

Influencers, games, promos code,

referral code, events, discounts,

ambassadors, discounts with Visa

cards, challenges, lucky draws, etc.

Referral code, vouchers, discount,

invite friends, events, etc.

Rewards, promotion, member

point, discounts, promo code, mid-

year sale, etc.

Discounts, promo code, seasonal

discounts, video series, games,

coupons, events, etc.

Source: Company Information

Leading Industry Players | Ride-hailing/Transportation

E-transportation is dominated by international companies like Grab and TADA. Local companies have emerged in the market, and there are some companies that

have exited the market due to the limitation of business vertical expansion.

Survey Responses | Ride-hailing/Transportation

I do not

book

transportat

on through

mobile apps

1 to 3 4 to 7 13 to 16 More than

68.60%

27.61%

2.46%

0.13%

0.80%

Frequency to book transportation within

the city/ provinces through mobile apps

Others

Camboticket

BookMeBus

PhnomPenhSoriyaMobile…

LMCar

Larryta Mobile App

Tada

Social Media

Capitol Mobile App

Grab

Vireak Buntham Mobile App

Direct contact

Passapp

I have my own transportation

0.53%

0.73%

1.05%

1.80%

2.13%

3.19%

3.53%

3.59%

4.19%

9.85%

10.65%

15.37%

20.43%

70.73%

Preferred Platform to book transportation

Other

Speed of service

Easy navigation on the platform

Better rates and prices

Safety

Habit

Convenience

0.27%

2.20%

4.52%

5.26%

14.30%

28.81%

44.64%

Reason for Preferring

Platform of Transportation

• Top 3 reasons for preferring transportation

platforms are convenience, habit, and safety.

• These are in line with online shopping in

general, further affirming the importance of

these factors when choosing online

platforms among respondents.

• Percentage of female participants (18%) who

consider online ride-hailing/booking

platforms safe is higher than male

respondents (13%).

• In Battambang, more respondents have the

tendency to choose the platforms out of

their habit (33%) than those living in Phnom

Penh (29%), Siem Reap (27%) and other cities

(28%).

• Male (35%) respondents have a higher

likelihood to book transportation more than

1 time per week compared to female (23%).

Nearly 7 in 10 respondents do not book transportation through mobile apps, while 27.61% do between 1 and 3 times. T is likely that most respondents likely have their

own transportation, and prefer to use it. Nation-wide, Passapp is the top app chosen for booking transportation.

Industry Analysis | Ride-hailing/Transportation

Source:IndustryExpertInterview,PROFITENCE’sAnalysis

Ride-hailing industry in Cambodia is dominated by

a few key players, catering to big cities

(Phnom Penh, Siem Reap, Sihanoukville)

translating into a largely untapped

market in other provinces.

The ride-hailing market is still new according to industry experts

meaning that not many people book transportation through online platforms.

68.6% of respondents answered that they do

not book transportation through mobile apps.

Consumers prefer using their own transportation

because of convenience, habit, and safety.

New ride-hailing businesses are not suggested to enter the market for now due to

the high barriers to entry and the strong market position of existing and

international brand players.

Technology has played a big role in the ride-hailing sector; customers prefer two

clicks to book rides.

Electric Vehicles have introduced blockchain technology for the ride-hailing

industry.

There is still a need for digital literacy amongst drivers. Those who know how to use

technology clearly can better serve customers, navigate routes more efficiently and

offer a variety of payment options.

Although the majority of respondents use their own

transportation, 27.61% of respondents book it online.

is the dominant player across provinces in

Cambodia whereas

is known to be popular in Phnom Penh.

Grab should do more marketing to expand its popularity across the cities

and provinces.

FASHION

Industry Focus

2017 2018 2019 2020 2021 2022 2023e 2024e 2025e

100

150

Average Spending Per User by Segment

(in USD)

Accessories Apparel Footwear

72.25

78.23

81.26

126.01

125.41

116.72

118.32

125.85

135.94

100

200

300

400

500

65.14

89.9

117.4

221.4

264.3

284

323.7

377.1

443.2

2017 2018 2019 2020 2021 2022 2023 2024 2025

CAGR (2022-2025) = 16%

Industry Overview | Fashion

Source: Statista, cambojanews, construction property,PROFITENCE’sanalysis

• The E-commerce segment of Fashion in Cambodia has an estimated revenue of USD 284 million in 2022. By 2025, it will reach USD 443.2 million.

• MoC’siTradebulletinreportedthatrevenuesfromthefashionindustryhavecovered~30%ofthetotalE-commercerevenues(USD970million)in2022.

• The average spending per user on fashion dropped to USD 116.72 in 2022 from USD 125.42 in 2021; however, it is projected to reach USD 135.94 in 2025.

• MoC has reminded small online sellers to apply for E-commerce licenses; threatening penalties of up to 10 millions KHR.

78.2

21.8

2022

Offline Online

93.2

6.8

2017

Offline Online

Purchases split by

online and offline

E-commerce Revenues of Fashion in Cambodia

MARKET UPDATE

MARKET TRENDS

§ Based on survey results, Fashion and Apparel was the most purchased

item online by a large margin.

§ Since 2019, rapid urbanization, a growing base of high-income

consumers, and an emerging middle class are contributing to a fast-

growing fashion industry.

§ More international brands are coming into Cambodia creating more

choices for consumers. These brands applied e-payment and QR at the

store and websites for browsing products.

§ There are a growing number of online platforms which allow easy access

to trendy styles across-borders from countries like Thailand, Hong Kong

and Singapore.

§ In comparison to 2021, our survey results this year show that Facebook,

Instagram, and Tiktok are still the leading sales platforms.

§ Our survey results show that livestreams and influencers have become

one of the leading drivers of sales. Online purchases have increased

from 6.8% in 2017 to 21.8% 2022.

Little Fashion H & M Zando

Year Established 2010 2022 2015

Market Coverage Cambodia Cambodia, Cambodia

Payment Options Cash, ABA, Wing, ACLEDA Cash, ABA, ACLEDA Cash, ABA

Offered Services

• Clothes

• Accessories

• Beauty

• Electronic

• Others

• Clothes

• Accessories

• Clothes

• Accessories

Marketing Strategy

Livestream, flash sales, seasonal posts,

modeling, discounts, etc.

Discounts, Modelling, etc.

Livestream, flash sales, seasonal posts,

modeling, discounts, events, membership cards,

etc.

Platform

App, website, Facebook, Instagram,

Telegram, Livestream, Tik Tok

Website, Facebook, Instagram, Youtube, Pinterest

App, website, Facebook, Instagram, Telegram,

Tik Tok

Source: Company Information

Online fashion has emerged in Cambodia; shop owners can use Facebook and Livestream for online business adoption.

Paying for and dropping orders have been replaced by a few clicks on Livestream or other social media platforms within a few minutes.

Leading Industry Players | Fashion

Survey Responses | Fashion

Other

Customer Reviews and

Testimonials

Instant Search and AutoComplete

Feature

Providing Simplified/One-Page

Checkout

More method of payments

available

Order Tracker

Increased variety of products

Better customer support

Refund + Return options

More shipping options

Speed of navigation/Fast Page

Loading Speed

Convenience of platform

navigation

0.33%

0.80%

1.66%

2.13%

2.59%

3.93%

4.86%

5.26%

6.19%

13.77%

29.08%

29.41%

Most important feature to improve

customer's experience

I don't

shop

online

1-2

times

3-4

times

5-6

times

7-8

times

9 +

times

15.17%

70.66%

10.18%

1.93%

1.00%

1.07%

Frequency of online clothes

shopping per month (overall)

Facebook

Instagram

Tik Tok

Apps

Toabao

Lazada

Foodpanda

Smileshop

Little Fashion

Others

90.29%

14.84%

12.77%

11.04%

8.98%

5.66%

2.13% 2.13%

1.93%

1.46%

7.19%

Preferred online clothes shopping platform

Social medias

dominate the market.

In regards to items which tend to be purchased the most online, fashion and apparel is the top 1 chosen by 76% of respondents. Facebook is the top online channel for clothes

shopping, and it makes up for 90% of respondents which is much higher than other listed channels combined. To pay for their clothes, respondents have the tendency to use

Wing the most (47%), followed by ABA (40%), cash on delivery (37%) and then ACLEDA (18%).

• Majority of the participants shop for clothes

online 1 to 2 times per month.

• Female respondents are likelier to do clothes

shopping online than their male counterparts.

• Residents living in Battambang have the

highest tendency to shop for clothes online

amongst all cities listed.

• Those who are older than 29 years old are less

likely to do so compared to those who are

between 18 and 29 years old.

• Instagram (17%) is favored by respondents aged from 18

to 29 years old over Telegram (9%), whilst it is the

opposite among those above 29 years old with Telegram

gaining 16% points and Instagram achieving only 8%.

• Notably, Tiktok is the second most famous in cities

including Battambang (19%), and Siem Reap (17%).

• To enhance the experiences of customers, online stores

should prioritise site navigation-related features such as

convenience and speed.

Industry Analysis | Fashion

Source:IndustryExpertInterview,PROFITENCE’sAnalysis

Online sellers should push notifications of

new arrivals and create more discounts at

different timelines consistently

According to our survey, there are about 70% of the total

respondents who buy clothes and apparel items at least 1 to 2

times per month while there are about 10% said they buy 3 to 4

times per months. Surprisingly, there are 15.17% of our

respondents said they do not buy clothes online at all.

47%

responses

40%

responses

37%

responses

Suggestion:

• Producing creative videos

• Push more Ad. Campaigns

• Focus on digital

advertising to create a

strong online brand

position.

is the standout platform for fashion,

with over 90% response, followed by Instagram and Tik Tok.

Therefore, online sellers utilize Facebook as the main platform,

as Instagram and Tik Tok alongside Facebook. Compared to our

last report, this trend has not changed at all. Taobao is also

popular platform to females than males.

Wing and ABA are the top preferred payment

methods for fashion shopping, followed by cash.

COSMETICS

BEAUTY AND

Industry Focus

84.7

15.3

2017

Offline

Online

69.8

30.2

2022

Offline

Online

Industry Overview | Beauty & Cosmetics

Source: Statista, Cambodia Health Beauty, Phnom Penh Post, Khmertimes, , news24 ,PROFITENCE’sanalysis

• The E-commerce segment of the beauty and cosmetics industry in Cambodia has an estimated revenue of USD 67 million in 2022.

By 2025 it is expected to grow to USD 95 million.

• Social media has become the most common platform for online sellers who sell beauty and cosmetics products.

Website and mobile apps are not widely used for this industry.

• Beauty and cosmetics platforms are beginning to expand to provide health products as well; Mayura is a good example of this.

• Khmertimes reported that the rapid growth of beauty and cosmetics arises from middle-income consumers.

§ Almost 10 years ago, most active consumers were between 15 and

40 years old; however, most consumers nowadays are young

adults below 25. Consumer demographics in this industry have

reformedastheyoungerpopulationinCambodia’sgrows.

§ Online purchases increased to 30.8% in 2022 from 15.3% in 2017.

That could be because the same consumers are more familiar with

online payment, unlike new consumers who prefer cash-on

delivery.

§ International suppliers like ABW, Stylekorean, Gmarket, and others

allow both wholesalers and end-users to purchase on their

websites.

§ Industry insider reported to Khmertimes in 2013 that Korean

culture and lifestyle are key drivers in this industry.

§ The extensive presence of Korean beauty brands today may

indicate that this is still the case.

Cambodian consumers largely purchase other beauty care, which includes beauty

tools and accessories.

2017 2018 2019 2020 2021 2022 2023 2024 2025

100

Revenues categorized by products

(in million USD)

Cosmetics Fragrances Other beauty care

21.

29.97

37.64

50.87

60.6

66.8

74.72

83.38

95.12

Purchases split by

online and offline

CAGR (2022-2025) = 12.51%

MARKET UPDATE

MARKET TRENDS

MARKET SIZE

Costmebeauty Mayura Soko Skins

Year Established 2015 2020 2015

Market Coverage Cambodia Cambodia Cambodia

Social Media Reach

• Facebook (55,677 likes, 563 checked in)

• Instagram (6,181 Posts, 79,5k Followers)

• Youtube (554 subscribers, 53 videos)

• Facebook (108,593 likes, 29 checked in)

• Instagram (845 Posts, 5,624 Followers)

• Youtube (50 subscribers, 39 videos)

• Facebook (35,803 likes, 119 checked in)

• Instagram (5,941 Posts, 8,984 Followers)

• Telegram (37 Subscribers)

Payment Options Cash, ABA Cash, ABA, Visa & Master Cards, Union Pay, Wing Cash, ABA

Marketing Strategy

Influencers, seasonal sales, flash sales,

download the app to get points &

membership, challenges, discounts, brand

discounts, giveaways, USD 35 purchase for

free item, store design, etc.

Seasonal sales, Mayuraday, brand discount,

discount USD 1 every Monday, games, promotion,

promo code, gift vouchers, flash sales, etc.

Seasonal Sales, free samples, new arrival offer,

Brand discount, Black Friday sales, payday sales,

buy 1 free 1, flash sales, etc.

Ordering Process

Apps & social media

1. Select product

2. Chat with sales team on social media

3. Confirm order & payment

Website & apps

1. Register

2. Select products

3. Fill information

4. Confirm payment

App

1. Register

2. Select products on the website

3. Fill in information & address

4. Confirm shipping fee

5. Confirm payment

*Deliver the same or next day

Source: Company Information

The E-commerce business for beauty and cosmetics is emerging. More shop owners rely on social media to operate their business. Moreover, we see the trends in

websites and apps created and the adoption of online payment has surged.

Leading Industry Players | Beauty & Cosmetics

Survey Responses | Beauty & Cosmetics

0 1 2 3 4 5 More

than 5

27.35%

41.98%

17.50%

7.65%

2.06%

1.40%

2.06%

Monthly Frequency of ordering cosmetic

products

Facebook

Goody

Instragram

Style Korea

Norm+

SokoSkin

Gmarket

ABW

Lush Skin

SGB

73.17%

17.40%

13.74%

12.91%

8.79%

3.85%

1.83%

1.74%

1.47%

1.01%

0.46%

Preferred platform to buy cosmetics online

Regarding items which tend to be purchased the most online, cosmetic products rank second with 42% of respondents ordering cosmetic products online once a month. Females tend

to purchase much more than males, and Battambang's residents tend to purchase more cosmetics than people in other provinces including Phnom Penh.

• Female respondents tend to order cosmetics online more than male

respondents.

• Those who are 18 to 29 years old are more likely to order than those

who are older than 29 years old.

• Facebook, Telegram and Goody are the three popular chosen by

respondents when buying cosmetic online.

Instagram vs Telegram

• Female respondents favor ordering cosmetics through Instagram

(21%) over Telegram (16%), as opposed to males, who prefer Telegram

(18%) and Instagram (8%).

• Instagram (16.4%) is used to purchase cosmetics online by Phnom

Penh’sresidents slightly more than Telegram (15.9%), while Telegram is

more popular than Instagram in Battambang, Siem Reap, and other

cities.

Industry Analysis | Beauty & Cosmetics

Source:IndustryExpertInterview,PROFITENCE’sAnalysis

Young consumers are easily swayed by global

culture and trends. Online sellers should use flexible

marketing and promotion based on the global

trend.

Industry players should offer a one-stop

marketplace and include a variety of

products for customers to make decisions.

Developing an app requires time; however,

the succession of development is not guaranteed. So,

the company should do a deep market study

and proper validation before deciding to

choosemobileapp’sasitscoreplatform.

Repeated customers tend to do online

payments whereas new customers prefer

cash on delivery.

Facebook is the most preferred platform for

cosmetics, however other social platforms like

Instagram, website, mobile app, etc. will be necessary to

attract more consumers.

HEALTHCARE

Industry Focus

Industry Overview | Healthtech

Source: Statista, khmertimes, Phnom Penh Post, ADB

MARKET UPDATE

• The revenue for the Health tech sector in Cambodia is estimated to be USD 83.12 million by 2022. By 2026 it is expected to reach USD 110.7 million.

• MoH launched the online registration system in 2019 for any company that wishes to sell or import medical products to Cambodia.

• As of 2021, ADB reported there were approximately 10 active health tech startups in Cambodia, double compared to 2018.

• The government has initiated several key digital programs such as Patient Management and Registration system (PMRS), Health information system (HIS), Health financing

management system, and beyond; urging the key players to promote its modernization for a more convenient, inclusive, and effective service.

• Digital health growth has emerged; digitalization allows patients to meet doctors online. Users can schedule digitally in the mobile app.

MARKET TRENDS

• In 2020, the Government launched its first-ever health technology solution (app)

calledthe‘SmartHospitale-HealthPethYoeungProgramme’.

• The app allows patients and doctors to manage and digitize medical records

and make appointments automatically through mobile phones.

• Smart health cards and QR code technology were also introduced.

• In line with the growing digitalization of Cambodia, more Health-tech ventures are

starting to emerge like Meetdoctor, Pilltech, and others.

• The increase in average revenue per user on eHealth and Digital Fitness &

wellbeing indicates that there is room for the health tech sector to grow.

• Regardless of ehealth emergence, people still prefer to go to their local

pharmacies because they are concerning the quality of products. Moreover, some

pharmacies that have put products selling online have not registered.

• Ifyouchecksomeonlinepharmaciesapp,youwillseethepharmacist’sdisclaimer

that you need to consult with them before deciding to buy any products.

• According to our survey, most respondents show interest in all-in-one healthcare

platforms meaning they support the idea of establishing an all-in-one mobile app.

Yet, the increase in estimated average revenues per segment can be an

opportunity.

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

100

150

200

Revenues for Digital Health categorized by services

(in million USD)

ehealth Digital Fitness & Well-being

CAGR (2022-2026) = 15.86%

11.45

20.43

32.27

51.57

68.25

83.12

102.6

119.7

134.8

149.8

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

100

Average Revenue Per User by Segment

(in USD)

ehealth Digital Fitness & Well-being

31.94

34.95

38.37

39.89

44.57

48.22

51.33

56.12

57.23

54.02

MeetDoctor PillTech Ucare Pharmacy Peth Yoeung

Year Established 2021 2019 2004 2019

Market

Coverage

Cambodia Cambodia Cambodia Cambodia

Payment

Options

Cash, ABA Cash, ABA Cash, ABA Cash, ABA

Offered Services

• Online consultation

• Find physician and medical

information

• Set appointment

• Testing

• Online pharmacies

• Others

• Point of sale for small and medium

pharmacy owners

• Real-time report

• Smart purchasing

• Accounting system

• Others

• Health Check up

• Online pharmacies

• Others

• Data Management

• Medical records

• Revenue & accounting

management

• Operational management

• Others

Marketing

Strategy

Tips about health, the Doctors

talk show, competition, events,

etc.

Seasonal Post, welcome new partners,

giveaways, promotion, event,

competition, video, etc.

Influencers, events, promotion,

flash sales, tips about health,

seasonal post, etc.

Tips about health, news,

inspirational quotes, seasonal post,

etc.

Platform App, website, social media App, website, social media App, website, social media App, website, social media

Source: Company Information

Cambodia is now seeing the growth of online business in the healthcare sector.

Traditional pharmacies have become online pharmacies; online consultations and physician appointments have been introduced to the market.

Leading Industry Players | Healthtech

Survey Responses | Healthtech

Over 4 in 5 participants (83%) do not order medicine online. The most used online platform for medicines is Facebook, followed by Foodpanda and Telegram.

56% of the respondents have never done online health consultation trial, while 44% of them have done it before.

I do not

order

medicines

online

1-2 times

per month

3-4 times

per month

5-6 times

per month

6+ times

per month

83.20%

14.39%

1.28%

0.57% 0.57%

Monthly Frequency of ordering medicines

online

other

Ucare Pharma

Phamacy De la Gare

Instagram

Meet Doctor

Nham 24

Foodpanda

Facebook

6.69%

5.47%

5.78%

6.69%

8.81%

11.25%

17.93%

21.28%

49.54%

Preferred platform to buy

medicine online

Yes, often Yes,

sometimes

Yes, rarely Yes, I used it

once

No, never

9.99%

16.18%

11.92%

6.39%

55.53%

Frequency of Online Health Consultation

Very interested Somewhat

interested

Somewhat not

interested

Not interested

40.19%

38.26%

5.12%

16.43%

Level of Interest in an all-in-one platform in

healthcare

• Male respondents are more likely to do online

health consultation than their female

counterparts with 29% of male participants either

doing it often or sometimes, compared to only

21.12% of females.

• Moreover, those staying in Siem Reap have a

higher likelihood to use online consultation trials

than those in other cities.

The highest frequency to purchase medicine

online is 1 to 2 times a month (14%) with

• Older respondents purchase more

than younger.

• A majority of respondents are very or

somewhat interested in an all-in-one

platform for healthcare.

Industry Analysis

Source: Phnom Penh Post, MISTI,IndustryExpertInterview,PROFITENCE’sAnalysis

Online sellers, particularly, pharmacists

comply with the Ministry of Health (MoH)’s

procedure for medical online selling.

• License

• Registration of the products

• Permission to advertise, etc.

Facebook and Foodpanda are

eHealth’s main platforms

In the future, Telegram and Nham24 can be the

next popular online platforms for eHealth

services like virtual consultation and buying

medicines. However, a dedicated eHealth

platform should be created for better health

safety, data security, monitoring and evaluation

of regulatory compliance.

About 80% of respondents prefer going

directly to pharmacies rather than self-

diagnoses and consult online due to:

• Unreliable website

• Lack of healthcare professionals

• Lack of proper guidance from professionals for side

effects and any harmful interactions of illness.

Suggestion: (1) To provide training across provinces on

utilizing digital health platforms. (2) Situating digital health

‘agents’acrossthecountrytoaidinteachinghowtouse

platforms.

Certified and Qualified owners

eHealth is known to rely on doctors/practitioners based

expertise. Therefore the operators of the key businesses

needs to ensure adequate qualification.

Suggestion: eHealth platforms should include the qualification of

pharmacists or doctors to build trust with patients who use eHealth services.

A vast majority of respondents (78%) show their

interest in an all-in-one healthcare platform,

indicating a willingness for consumers to welcome

the idea.

A positive sign for all-in-one

eHealth platforms

MEDIA AND

ENTERTAINMENT

Industry Focus

Industry Overview | Media and Entertainment

Source: Statista, khmertimes, Phnom Penh Post, ADB

• Revenue in the Digital Media market is projected to reach USD 74.87m in 2022, a 17% growth from 2021.

• Themarket’slargestsegmentisVideoGameswithaprojectedmarketvolumeofUSD38.7min2022,a16.5%risefrom2021,withanestimated 3.8 million players.

• Digital music revenue in 2022 is USD 6.5m, capturing only 9% of digital media market share.

• Youtube ads started showing again in Cambodia aroung the 18

of August 2022, after it was halted by the media platform in April 2021.

• Foreign giants such as Netflix and Facebook registered for Value Added Tax (VAT) with the General Department of Taxation, effective April 1

2022.

§ The market experienced over a 30% growth rate before the pandemic.

It has slowed down significantly in 2021 and 2022.

§ There are 17.7 million internet users and 13.8 million Facebook users in

2022. Expansion of mobile internet access leads to a steady growth in

the demand for all types of digital media.

§ Driven by Facebook users, many traditional media companies expand

themselves into online versions and use Facebook as their platforms to

deliver content to their readers, often linked to their websites.

§ More than 50% of people state that social networks and

entertainment are their top reasons to go online.

§ Utilization of premium subscription models for digital media and

streaming services are still limited. People prefer free content

concentrated on big social media platforms such as Facebook and

YouTube.

§ For example, Raksmey Hang Meas, a music Company, is the

most subscribed YouTube channel in Cambodia with roughly

more than 6 millions subscribers.

Market size

Video games and video-on-demand cover 80% of market share in

digital media revenue in 2022, a majority is captured by video games at 52%.

This indicates high potential for the E-sports industry in the kingdom.

MARKET UPDATE

MARKET TRENDS

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

120

100

0 0%

10%

15%

20%

25%

30%

35%

40%

32%

34%

33%

27%

17%

Digital Media revenue in million USD

Video-on-Demand

Video Games

ePublishing

Digital Music

Growth rate

CAGR: 9.4%

Sastra Film CamID Pleng

Year Established 2015 2018 2019

Market Coverage Cambodia Cambodia Cambodia

Payment Options

Top up card, ABA pay, Credit/Debit Card,

KHQR, and Wing.

N/A SmartPay, ABA Pay, and Credit/Debit Card

Offered Services

• Movies

• Series

• TV Shows

• Movie

• Series

• TV Shows

• Streaming e-sports

• Music Streaming

Market Strategy Television broadcasting, free content, etc.

Lucky spin rewards, free content, free 2GB internet

for Metfone users, etc.

Free contents, earn Pleng Points and redeem

exclusive merchandise, Refer friends, etc.

Premium subscription

(per month)

USD 5.00 Free USD 0.99

Leading Industry Players | Media and Entertainment

Local players face tough competition with top international video and music streaming services plus free entertainment contents available on social media.

Source: Company Information

Survey Responses | Media and Entertainment

Yes

38%

62%

Do you have any online media

subscriptions (Music, movie,

entertainment)?

Netflix

Spotify

iTunes

Online Newspapers

Sastra Film

Smart Pleng

Sabay

Other

87.50%

25%

8.30%

4.20%

12.60%

If yes, which ones?

Less than

USD 10

USD 11-25 USD 26 +

62.50

37.50

Per month, how much

do you pay for these

subscriptions?

Never <1 hour

a week

5-10

hours

a week

10-15

hours

a week

15+

hours

a week

36.50%

38.10%

19%

4.80%

1.60%

Do you play online games?

65%

Yes, rarely

22%

Yes, sometimes

Yes, usually

Do you ever make in-game

purchases?

< USD 10 USD 11-25 USD 26-50 USD 51+

71.40%

21.40%

7.10%

If yes, how much do you spend on in-

game purchases per month?

Mobile Phone

Tablet

Laptop

Desktop

Console

77.50%

7.50%

2.50%

Which device do you use

the most to play games?

* Disclaimer: Survey for online education industry was conducted separately with 74 respondents of whom 94% reside in Phnom Penh. 73% of them are 18-24 years old.

Suggestion: Having business presence on Facebook is important to keep

customer relationships.

Industry Analysis

Game companies should focus

on developing mobile game

From our survey, 78% of respondents play games

on mobile phones while the number of those who

play games on tablets, laptops, desktops, and

consoles is very low.

International companies dominate the

local gaming sector due to:

Suggestion: Local game companies should improve their gaming quality and

push marketing efforts such as hosting competitions, engaging with players

on social media, etc. to better compete with international firms.

• High graphic quality

• A large number of players

• Event/competition with

cash-prize

• Team sponsors

• Platform development

Media platform is dominated by Facebook,

the most visible digital advertising space.

The rise in the number of internet users comes a rise in social

media usage. In Cambodia, people often use Facebook to

search for news and events, as opposed to starting with a

Google search.

This means that Facebook is a place for first impressions, and

a place where, if a business has no presence, it will rarely be

seen by potential clients/customers.

Video streaming platform

Netflix is subscribed by 88% of respondents in our

survey. This indicates that global platforms take

precedent in consumer preference.

Competitor Landscape

MARKETPLACE

LOGISTICS

PAYMENT GATEWAYS/BANKS

FASHION & APPAREL

SOCIAL COMMERCE

BEAUTY & COSMETICS

ONLINE EDUCATION

RIDE-HAILING

HEALTH TECH

INSURANCE

FOOD AND GROCERY DELIVERY

MEDIA AND ENTERTAINMENT

ONLINE SUPERMARKET

*This is not an exhaustive list. The companies listed include both international and domestic

enterprises that offer services in Cambodia, but may not have a physical location.

Source: Expertsinterview,andPROFITENCE’sAnalysis/Opinions

• Align terms and conditions with Government rules and

regulations on E-commerce

• Promote registration of businesses, encouraging the shift from

social media to dedicated E-commerce platforms

• Promote the use of the centralized and secure payment system

Bakong.

Recommendations to the Private Sector

Platforms

• Seek assistance from development partners and accelerators

(for example Khmer Enterprise) to accelerate digitization and

digitalization.

• Utilize the Government owned CambodiaTrade.com E-

commerce marketplace for made-in-Cambodia products.

Vendors

• Enhance public-private-development with the Government on legal

and regulatory aspects of E-commerce.

• Increase understanding of members on E-commerce in Cambodia/

• Training programs

• Matchmaking companies with investors

Business Associations

• Enroll in public/private E-commerce literacy programs.

• Utilize existing and readily available platforms (such as

CambodiaTrade.com–ifapplicable).

• Build a network of development partners with experience in this

space

• Utilize the growing network of local coworking spaces, competitions,

incubators and accelerators, to prepare you for cross-border

expansion.

MSMEs beginning their E-commerce journey

• Encourage and support targeted donor funded support;

• With a focus on under-funded initiatives such as (1) Edu-tech and (2)

Health-tech.

• Support Digital Startup Incubators to better serve E-commerce related

initiatives.

• Incentivize leading associations and accelerators to support cross-border

E-commerce.

Recommendations to the Government

Source: Expertsinterview,andPROFITENCE’sAnalysis/Opinions

Database and Trade Statistics

• Disaggregate trade statistics on e-trade by separating traditional

commerce from E-commerce. This includes the import and export of

goods/services facilitated through E-commerce platforms.

• Establish a consistently updated repository of up-to-date laws and

regulations on E-commerce.

• Increase data security, implementation and monitoring for consumer

protection through a regulated, interoperable and connected database.

• Whereby the database draws information from all relevant

ministries, and is accessible by all.

Inter-ministerial Coordination

• Increased coordination among Government agencies on the support

provided to MSMEs in their online journey, such as but not limited to:

• Help MSMEs record all documents and prepare them for

registration and yearly tax payments.

• Help setup digital systems to record business transactions with

financial statements.

• Implementing e-KYC.

• Increasing the number of available online payment gateways on

government portals.

• Improve the coordination on E-commerce issues within one Ministry, and

have one department dedicated to E-commerce development.

Investments and Support

Incorporating Digitalization from Within

• Increased adoption of online tools by Government Agencies to allow for

more G2B and G2C services.

• Enhance the E-commerce related services of the Cambodia Post as a

cheaper and agile option for low-value shipments.

• Seek inputs and advice from the private sector for law, regulation making,

and FTA negotiations, on innovations and technologies that will affect E-

commerce in the near future.

• Ex: AI, Regulatory Tech., Internet of Things, Data Security.

Conclusion

Source: CFI,Survey,Expertsinterview,andPROFITENCE’sAnalysis

Cambodians have their own favorite online platforms to use when it comes

to each industry. In Brief:

Food Panda is preferred for food or grocery delivery, while Facebook

dominates cosmetics, medicine and fashion areas.

Likewise, Prudential is trusted for insurance.

Vireak Bunntham dominates logistics

and Passapp dominates ride-hailing/ transportation although almost 70% of

respondents do not book transportation online mainly because they have

their own transportation.

Online businesses are usually expansions of traditional businesses. Today,

we are seeing companies adopt omnichannel strategies.

1. Traditional banks and financial institutions launching mobile banking apps and

opening online payment gateways for E-commerce activities.

2. Although the ride-hailing market is growing, most survey respondents prefer

using their own transportation.

3. Restaurants sign up with food delivery apps or offer self-delivery, while

consumers are educated on the food and grocery delivery practices.

4. The E-commerce segment in Fashion and Beauty & Cosmetics take place

mainly on social media provided by traditional shops and online sellers.

5. Global companies in the gaming, video and music streaming sector capture a

much higher market share compared to local companies.

6. Logistics companies partner with online marketplaces and social commerce

sellers.

7. Insurance companies are focusing on digitalization by expanding into

bancassurance business, making online payment for insurance available via

mobile banking app.

8. Online education is experienced by students at all levels during the pandemic.

This opens market opportunities. Hence, there is demand but a lack of supply.

9. eHealth is still in a very early stage and all-in-one platforms for healthcare are

needed.

Start-up stage

• Online education

• eHealth

Growth stage

•Media and

entertainment

•Insurance

•Logistic

Shakeout stage

•Banking and payment gateways

•Ride-hailing/Transportation

•Food and grocery delivery

•Fashion

•Beauty and cosmetics

The Industry life cycle typically consists of five stages - startup, growth,

shakeout, maturity, and decline. Based on our analysis, we have identified the

stages of the different industries mentioned in this report.

Where we are today

* Based on survey results

Future Outlook

Source: Expertinterviews,andPROFITENCE’sAnalysis/Opinions

What to expect moving forward

The future of E-commerce is bright, as consumers continue to become more

technologically savvy the private sector continues to push forward in line

withtheGovernment’sroadmapforadigitaleconomy.

Insurance

Healthcare

Logistics

The stability of the E-commerce ecosystem will likely depend on the ability of

domestic players to compete in a saturated market dominated by foreign

giants. Government regulations promoting greater competitiveness between

local and foreign players will be key.

We can expect the Government, primarily through the Ministry of Commerce,

to push for greater cross-border E-commerce. Expanding into global markets

will become easier moving forward considering recent developments linking

the electronic processing systems of the Cambodia Post and the Customs

department (GDCE) for small packages; saving time and money for local

MSMEs.

On an international level, trade integration developments between

Cambodian and economic partners such as China, Korea and ASEAN will have

a spillover effect in indirectly promoting cross-border E-commerce. We can

expect it to bolster E-commerce initiatives across core exporting industries

such as Agriculture, as demand for Cambodian Agri-Foods grows.

Additionally, international commitments acquired by Cambodia in bilateral

and multilateral FTAs will be relevant to laws and regulations for E-commerce.

To remain compliant with international obligations, the Government will

likely have to amend or draft new regulations.

Industries to look out in 2023

Leading insurance players are pushing for a fully digital

insuranceexperienceconsideringCambodia’sgrowing

digital penetration. Innovative solutions to traditional

insurance products (such as Insurance ATMs and all-in-one

platforms) are bringing exposure to provinces.

Healthcare, more specifically health-tech products such as

all-in-one healthcare platforms and digital management

systems, are set to revolutionize the way Cambodia

navigates healthcare. Supported by local and international

funding, health-tech startups are leading the way to

improving the exposure of health-tech across Cambodia.

Local, state-owned and international logistics service

providers are set to benefit from better trade integration

and implementation of a digital customs clearance system.

Accessibility to foreign markets will improve, and demand

for low-value shipments to foreign markets will increase.

Resource Bank

*The above-mentioned resource bank will be continuously updated with relevant training and regulatory materials throughout the year.

Ministries

• Ministry of Commerce: https://www.moc.gov.kh

• Ministry of Economy and Finance: https://mef.gov.kh

• Ministry of Information: https://information.gov.kh

• Ministry of Industry, Science, Technology and Innovation: https://misti.gov.kh

• Ministry of Posts and Telecommunications: https://mptc.gov.kh

E-commerce Affiliated Associations

§ Cambodia Women Entrepreneurs Association:

http://www.cweacambodia.org

§ Cambodia Association of Finance and Technology: https://www.caftkh.org

§ The Association of Banks in Cambodia: https://www.abc.org.kh

§ Young Entrepreneur Association of Cambodia: https://yeacambodia.org

§ Cambodia Logistic Association: https://www.cla.org.kh

• General Department of Taxation: https://www.tax.gov.kh/en

• Techo Startup Center: https://www.techostartup.center

• Startup Cambodia: https://startupcambodia.gov.kh

• Business Registration: https://www.businessregistration.moc.gov.kh

• Registration Service: https://registrationservices.gov.kh/home-en/

• Khmer Enterprise: https://khmerenterprise.info

• ថ្ នាលធុ រកិច្ ច: www.business.gov.kh

• Cambodia Trade: https://cambodiatrade.com/home-page

• Digital SME Accelerator: https://dsa.techostartup.center

• Startup program: https://startupcambodia.gov.kh/program?page=1

• Registration Service: https://registrationservices.gov.kh/home-en/

• Commerce Cambodia iTrade Bulletin: https://commerce-

cambodia.com/2022/08/01/itrade-bulletin-vol-2-issue-01-for-july-2022/

• National Digital Economy and Society Council website:

https://digitaleconomy.gov.kh

• Go Digital Cambodia: https://www.godigital.gov.kh/

Government websites

§ American Chamber of Commerce in Cambodia (AmCham Cambodia): https://amchamcambodia.net

§ European Chamber of Commerce in Cambodia (EuroCham Cambodia): https://www.eurocham-cambodia.org

§ Cambodia International Chamber of Commerce ( CICC ) and Cambodia-China Councils Association for Economic

Development (CAFED): http://www.cicc.org.kh

§ Cambodia Chamber of Commerce: https://www.ccc.org.kh/kh/home

§ International Business Chamber of Cambodia (IBC): https://ibccambodia.com

Chambers of Commerce

Document Resource Bank

§ Google Drive:

https://drive.google.com/drive/folders/1

rDYmiRCeQkkpo6XECXLNxa9kI6Nwwq

HU?usp=sharing

Our Team

Thisyear’sreportmarksourthirdandlargestE-commercestudyyet.Itismeanttoserveasaone-stopreportprovidingaholisticoverviewonthe

growing E-commerce landscape in Cambodia. More segmented studies on E-commerce are required to have a deeper understanding of various

industries in Cambodia, PROFITENCE will be releasing follow-up articles in early 2023, drawing from this report, focusing on each Industry.

For 2023, PROFITENCE will be scaling up to produce a full-fledged Digital Economy Study. Featuring a larger sample size across consumers, producers

andexpertsaswellascoverageacrossmoreaspectsofCambodia’sshifttowardsafullyDigitalEconomy.

To read more about what we do, visit https://profitence.asia/

Subhadeep Chowdhury

Founder | Director

Shane Gladwin

Policy Analyst |

Project Lead

Pichannica Ung

Business Analyst

Kimsorng San

Jr. Business Analyst

For any inquiries on PROFITENCE, or this Report, please contact

[email protected] [email protected]